Selling Experiences Online: Announcing the BAV-S3 4V® Brand Index

Selling Experiences Online: Announcing the BAV-S3 4V® Brand Index
by Kirk Wakefield – June 2016

Juniper Research classifies ticketing as one of the primary commerce applications driving eCommerce, estimating over one-fourth of ticket purchases will go mobile in the U.S. by 2020, and over half of ticket purchases outside of the US and Europe to be mobile-based by 2020. Teams like the Portland Trail Blazers renew season tickets via mobile devices and continue to see fans more comfortable in making both small and large transactions on mobile apps.

While we in the U.S. may think life moves at the speed of digital, we move at a snail’s pace compared to the growth in China, where the average consumer spends 45 hours online a week (10+ over global average). B2C e-commerce in China is expected to grow at a 30% clip from 2016-2020. As sports-related brands seek a global presence (like Barcelona and Real Madrid), teams and vendor partners must focus on engaging fans in the ways fans desire, rather than only what is expedient or profitable in the near term.

The quality of the consumer experience with the brand in online ticketing will determine the winners and losers as the world turns increasingly mobile. How do we know who’s winning? Who’s winning so far?

The BAV-S3 4V® Brand Index

The BrandAsset Valuator (BAV®) database is the largest and leading quantitative, empirical study of brands and consumers. Spanning 16 years, 51 countries, and over 680,000 respondents, BAV is the world’s largest database of brand perceptions; containing ratings on over 43,000 brands on 72 dimensions.

In collaboration with BAV, we developed the S3 4V ® Brand Index that evaluates online brands in terms of three positive dimensions of value, vision, and social vibe and one negative dimension of vanity. Customers favor online brands that demonstrate:

  1. Value: The leader, the best brand online characterized as (having)
    1. good value and worth more,
    2. trustworthy and reliable,
    3. simple and straightforward,
    4. high quality and high performance,
    5. original, authentic, down to earth and traditional
  2. Vision: The progressive, innovative, up-to-date, intelligent, visionary brand that is gaining in online popularity.
  3. Social Vibe: The brand that represents a fun, social, friendly, and charming online persona.

Customers discount or disfavor brands trying to score style-points without substance. Online visitors pick up on signs of Vanity, characterized as attempts to appeal to the upper class on the basis of glamour, style, prestige, sensuality, and trendiness. We find this has a negative effect on regular brand usage.

Together, these four dimensions explain over 50% of consumer usage of the brand. That amount of variance is another important V to consider as brand compete to win customers to their online real estate.

The Winners

The 4V Brand Index covers 278 brands that offer some form of online experience across a dozen sectors. Our index places weights on each of the four Vs in an equation that best predicts brand usage. Scores range from Amazon on the high end (29.02) to ISIS (-7.24) on the low end. Sectors include mobile phones, with iPhone and Samsung Galaxy outclassing all other comers by large margins. More interesting is competition among mobile payment vendors (Amazon Local Register vs. Apple Pay vs. Square), internet tools and services (Google Maps vs. MapQuest), or social media (how is Snapchat doing against Facebook, Twitter and LinkedIn?).

But, since we’re all about sports first, that’s where we will begin. The table may be sorted based on the overall index score or each of the 4Vs.

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Ticket sellers

Although tickets are only a part of their businesses, eBay and Groupon lead the way in offering online experiences that customers perceive as offering value, vision, and vibe that outweigh attempts to appeal to the vanity of buyers. Given shopper motives for buying online, the strongest predictor of brand usage in our equation is value, followed by brand vision.

Between the two leaders in ticket sales online, eBay’s subsidiary, StubHub (8.56) performs better than Ticketmaster (7.13), primarily due to vision (13.29 vs. 10.52) and social vibe (12.61 vs. 10.54) customers get when they visit their websites or use their mobile apps.

In the future, we will add SeatGeek and VividSeats to the index, two ticket sellers with significant investments in online and mobile ticket distribution.

The Losers

Fan Duel and Draft Kings suffer from high vanity scores and low value scores. Being new and on the cutting edge (vision) helps attract customers, but a brand’s longevity is in question if it cannot deliver value.

On a broader scale, sports teams must be mindful of partnering with online brands with negative personas. The two lowest rated online brands (ISIS and Al Jazerra) clearly aren’t potential partners, but not far behind are Foursquare (4V = .13) and Tinder (4V = .18). Granted, these might target specific fan segments, but the signal sent to all customers may not bode well for the team and its other brand partners. Brands with relatively low 4V scores may be due to overall low market strength and penetration. Customers don’t necessarily hold negative perceptions, but may hold no perceptions at all about the brand.

Looking forward

In future analyses, we will take a closer look at ticket sellers to examine the specific features and drivers of customer online experiences.

Sponsorship Negotiations: The Power of Nice

Sponsorship Negotiations: The Power of Nice
by Lynda Carrier-Metz – July 2014

Last year a friend recommended a book titled “The Power of Nice,” suggesting it might help in my negotiations. I was surprised by the title, as most negotiation training involves “sticking to your guns” and overpowering the other side. Ron Shapiro, the author, is a very respected sports agent. His book shares how anyone who sits down to make a deal can get what they want by exercising the surprising “power of nice.”

If you read no further than this, one thing I have learned from reading this and other Shapiro books is this:

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ASK the other party what
THEY NEED
the outcome to be.[/dropshadowbox]

Understanding their needs up front has been amazing in moving an agreement along. I expect that having the CLIENT ask what the SELLER needs has caught a few off-guard. I don’t think that is normal in the standard negotiation practice, but I have actually found the process is enjoyable and everyone seems satisfied when the contract is finalized.

Prepare

Ron’s books show you how to prepare better, probe for what they want and why, and to propose–but not going first to avoid impasses or getting backed into a corner.

Preparation is power. Successful negotiators are prepared negotiators. It takes patience and persistence but it always pays off. This could be interpreted as manipulative, but that isn’t how I see it. I try to know how my brand can help their company, how we can truly be partners as an outcome of the negotiation process. If this isn’t done at the beginning, even if you say we are open to additional opportunities, those rarely occur after the deal is inked.

Probe

Probe so you know their (a) wish list, (b) motivations, and (c) must-have list.

Listening is power. If you ask the right questions and LISTEN the other side will give you the input you need to make the deal you want.

Sometimes clients don’t want to ask questions because they appear to be uninformed or stupid. And even if they ask, sometimes they aren’t listening. This is an area I continue to be challenged on, digging deeper vs. accepting a surface response. I once heard that the first answer to a question isn’t where you gain knowledge, but if you wait quietly for the second response, you will learn so much more. That’s when the person has a chance to really think about their response. Another barrier to probing is being afraid to ask the question. In your mind you may already think you know the answer, one you won’t like. But don’t make the decision for them without knowing: Ask.

Propose

The three rules of proposing are: (1) Try not to make the first offer, (2) Never (immediately) accept their first offer, and (3) set your aspirations high.

Patience is power. With a few tweaks, since reading Ron’s books, I have found the first offer isn’t that far off from what we had hoped to achieve. Like many industries, ours is highly competitive, the margins are low, and everyone is being held to a higher return than sometimes is reasonable. Understanding all the options available so that you can get the best payback on your investment is critical. If you propose first, you may miss an opportunity to know all the possibilities a company has to offer. Be patient. Have a good team to bounce off ideas. Be persistent.

Budgets and expectations are high. I found Ron’s approach lowered the stress level for everyone involved in negotiations and outcomes have been more successful for both parties.


 

Reference: “The Power of Nice” by Ronald M Shapiro and Mark A Jankowski

Cover photo courtesy of Jonny Goldstein.

Why Sponsors Flock to The Olympics and Super Bowl: 5 Things You Didn’t Know About Their Fans & Brands

Why Sponsors Flock to The Olympics and Super Bowl: 5 Things You Didn’t Know About Their Fans & Brands
by Anne Rivers – February 2014

Why do brands line up to sponsor The Olympics & the Super Bowl? Below are five truths you might have suspected, but didn’t have the evidence or the details that explain why brands do what they do.

1. The Super Bowl and The Olympics are the two most powerful sports brands in the United States.

Top Sports Brands, U.S.

2. Across all leagues the final game is always more powerful in terms of brand strength and stature.

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3. The Super Bowl and The Olympics have the most avid fans.

 When broken down into percentages of dedication from respective fan bases, the NFL & Olympics have more avid fans than the other leagues, providing tremendous brand rub for sponsors.

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4. The Super Bowl and the Olympics Match up with Unique Brand Images

The dedication of each fan base, especially when describing The Super Bowl or The Olympics, originates from what each sporting event stands for. The Super Bowl stands for iconic performance and fun and can be compared to similar brands as the image below indicates. The Olympics, on the other hand, are usually characterized by originality, authenticity, and grace.

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5. The Seahawks’ image stands for fan passion, but the Broncos stand taller for perceived skill.

In anticipation of the upcoming Super Bowl this weekend, we, and avid NFL fans, see the Denver Broncos taking home the Lombardi trophy.

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Special thanks to Emily Buratowski for helping with this article.

The AT&T Challenge: Innovative teaching tool brings ideas to life for brands and teams

The AT&T Challenge: Innovative teaching tool brings ideas to life for brands and teams
by Darryl Lehnus – March 2013

The AT&T Challenge: The Beginning

The AT&T Challenge is the brainchild of Eric Fernandez (BU ’94), then Director of Corporate Partnerships for AT&T. Working in collaboration with Eric and AT&T’s partnership with the Dallas Mavericks, the Sports Sponsorship & Sales (S3) students developed sponsorship activation strategies in a team competition to see who could be the most creative and effective in reaching partnership objectives.

Since 2007, S3 students have had the privilege of working with a variety of sports properties including the Dallas Stars, San Antonio Spurs, San Diego Padres, AT&T Cotton Bowl, Baylor Athletics, and this year’s partner Circuit of the Americas. Tom Hughes (S3 Board Member, Director of Sponsorship Marketing & Promotions, Reliant Energy) helped grow the program while at AT&T. Eric continues to lead the way in developing the process.

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Eric Fernandez
Eric Fernandez

We’re constantly looking for fresh, innovative ideas. As a marketer, it’s easy to fall into a “tunnel vision trap” because you live and breath your brand every day.

The S3 students provide a unique point-of-view unconfined to traditional “corporate” thinking and challenges us to be more creative.

Relevantly connecting with 18-24 year olds is a priority for any brand.What better way to do this than a group of college students providing their points-of-view on what’s interesting and meaningful to them? The students’ ideas are creative, compelling and provide insight into how best to connect with them. [/dropshadowbox]

The Process

The AT&T Challenge is real world immersion for students. The structure and process is basic to how sponsorships work. AT&T, currently under the leadership of Bill Moseley, selects a current or prospective sports property partnership relationship. The steps mirror industry practices:

  1. Sponsor goals: AT&T presents the objectives and goals of their marketing strategy and how the sponsorship fits within that strategy.
  2. Property assets: The sports property identifies the resources, inventory, and assets available in packaging the partnership.
  3. Probing/exploration:  Representing the property, students ask questions and explore creative opportunities for the partnership.
  4. Preparation: With the goals and asset inventory available, S3 student teams create unique customized partnership proposals. Over the next six weeks, students participate in conference calls (assisted, of course, by AT&T) with the sponsor & property with clarifying questions and applications to ensure package elements are available and can be delivered.
  5. Presentation: Student teams compete to see which of their partnership proposals best meets the needs of the partners.

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Brad Alberts

Baylor University continues to provide the finest sports marketing experiences for its students of any university I have seen. The AT&T Challenge was a tremendous opportunity to see Baylor’s students articulate a sports sponsorship and to see the young talent that ultimately could work for an NHL team like the Dallas Stars.[/dropshadowbox]

S3 students know they will face the evaluations of a panel of national leaders in the sponsorship field. The pillar of strength in this process is the ever-present Eric Fernandez. Eric interacts with our students during the process to review, advise, and critique each team’s ideas and concepts.

The panel includes five members:

Bill Moseley
Bill Moseley

Bill Moseley ultimately decides if the proposals meet the AT&T objectives. A productive outcome of this project is the proposed ideas, concepts, and promotions are frequently implemented by AT&T and the various properties.

“The AT&T Challenge is mutually beneficial to all involved,” explains Moseley. “Students get experience and develop needed skills. The innovative ideas from these outstanding young people is a value-add to our partners. And, like most of us who’ve had someone help us, we love giving back to help the careers of these students.”

Always looking for more

Students in the S3 program participate in ticket sales projects each year, generating revenue up to $25,000 for teams and events such as the Houston Astros, Texas Rangers, San Antonio Spurs, Houston Rockets, FC Dallas, Mastercard Colonial, Valero Texas Open, Houston Shell Open, and the Alamo Bowl. Students call from our AT&T 24-seat call center and students in the S3 CRM-track manage the database tracking calls and notes through Microsoft Dynamics.

AT&T Call Center
AT&T Call Center

The S3 program is expanding opportunities to engage in more activities like the AT&T Challenge. S3 students operate in agency teams as part of the new S3 Sponsorship Incubator (SI). In two weeks time, SI teams  present creative activation approaches suited to the needs of a partnership. You can join Pizza Hut and the Houston Dynamo, the first two clients of the new SI service, by contacting me by email or calling 254.710.6189.


 

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Jason Simpson
Jason Simpson

The S3 program is grateful to AT&T for their trust and investment of time into the preparation of the next generation of sports sponsorship leaders. In particular, we honor in memory the contributions, friendship, and the life of Jason Simpson to the S3 program. Jason passed away December 18, 2012.

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