Does Grit Lead to High Performance in Sales?

Does Grit Lead to High Performance in Sales?
by Kirk Wakefield – June 2017

What is Grit?

Angela Duckworth made an industry out of her own passion and perseverance toward a long-term goal–her definition of grit–and measuring it in others.

Controlling for other factors (SAT scores, IQ, self-control, and the Big 5 personality traits), she and her colleague’s research[ref]Duckworth, Peterson, Matthews & Kelly (2007), “Grit: Perseverance and Passion for Long-Term Goals,” Journal of Personality & Social Psychology.[/ref] found the grit items (click here to see if you have grit) to be good predictors of performance among spelling bee contestants, Ivy league students and West Point cadets. Gritty children work harder and longer, performing better in national spelling bees. Gritter students attain higher levels of education among those of the same age, but grit does appear to increase as we get older.[ref]Duckworth &  Quinn (2009), “Development and Validation of the Short Grit Scale,” Journal of Personality Assessment.[/ref]Gritty cadets are more likely to complete training. Those with more grit experience fewer lifetime career changes.

The question is: Is grit a good predictor of sales performance in professional sports? In particular, accounting for popular DISC behavioral measures and factors under sales management’s control, does measuring grit offer potential help in recruiting and retention of salespeople?

The Study

Data were collected from 307 salespeople (89% < 4 years experience; 67% males; 98% with at least college degrees) and 34 managers from 18 professional teams in MLB, NBA, MLS, NFL, and NHL. Respondents provided demographics and completed measures of:

  1. DISC behavioral profile
  2. Grit
  3. Impression management (to account for social desirability bias)
  4. Adaptive selling skills
  5. Extent of sales training provided by the organization
  6. Confidence in selling skills
  7. Job satisfaction
  8. Sales performance relative to others in department (dollar sales, new packages, major accounts, exceeding targets, helping supervisor & dept hit goals)
  9. Selling effort relative to others in the department (hours, effort, contacts made)

Different from other studies, we collected sales performance and effort evaluations on exactly the same items (#8 & #9) from the direct supervisors of each sales representative. Each sales manager examined current sales performance (in dollars), rank ordered those in the department, and then completed the performance evaluations for the first quarter of the 2017 year. In total, we were able to match 288 responses (i.e., inside sales and account executives) with supervisor evaluations. [ref] We conducted a second study among sales staff (N = 144) across the entire East Coast Hockey League with similar results. [/ref]

The Results of Grit

The types of achievements studied by Duckworth each culminated in an event (i.e., completing college, West Point, or a Spelling Bee). A sales career is a series of continuous competitions, where standings update daily, and the conclusion uncertain. Does grit directly predict performance?

Among salespeople in professional sports, grit indirectly influences sales performance in two important ways:

  1. Grittier salespeople give relatively more effort than other salespeople, including hours spent selling and the total number of contacts made. In turn, effort (work ethic) drives performance in this data.
  2. Grittier salespeople are more satisfied with their jobs, which means lower turnover. Satisfied salespeople give more effort, which leads to higher performance.

Bottom line: Hire gritty salespeople. Use the grit scales as one input in recruiting. Mean grit score among cadets (3.75) and our study (3.82) would be a good baseline.

Grit scores at the highest levels may be a function of impression management, saying what we want to hear. But, either way, people who say they have more grit are evaluated by their managers as giving more effort. In a battery of measures, grit scores offer insight. [ref]If potential reps willingly admit having little grit (i.e., scores low on the grit scale), you should believe them.[/ref]

The Effects of DISC Behavioral Styles

This study largely confirms what we found before regarding DISC behavioral styles among salespeople, with some additional insights. Salespeople with more dominant behavioral styles (High D’s) perform better than those with low dominance traits.  Why? The data shows:

  1. High D’s are more likely to be confident in their sales skills.
  2. High confidence in selling skills is a strong predictor of performance.
  3. High D’s are more likely to use adaptive/consultative selling.
  4. High C’s are less likely to use adaptive/consultative selling.

Bottom line: Use DISC behavioral profiles for recruitment and development. But, be careful: Some high SCs (low D) can be very competitive and have the ability to focus on goals. Confidence in selling skills is a much stronger predictor of performance than DISC behavioral styles. The good news is good sales training builds confidence.[ref] In other words, good salespeople are born, but you can also raise them.[/ref]

The Effect of Sales Training

Effective sales training helps salespeople know how to: (Average grade across all teams.) [ref] For measures, see: Sujan, Weitz, and Kumar (1994), “Learning Orientation, Working Smart and Effective Selling,” Journal of Marketing. [/ref]

  1. Interact with customers (92)
  2. Provide appropriate service levels (88)
  3. Behave with customers (92)
  4. Handle objections (89)
  5. Handle unusual problems/situations (80)
  6. Deal with criticism (85)
  7. Present specific team strengths (86)
  8. Highlight specific benefits (91)

[dropshadowbox align = right width = 40%] Adaptive selling skills (disagree/agree; *reverse scored):

  1. Each customer requires a unique approach.
  2. When I feel that my sales approach is not working, I can easily change to another approach.
  3. I like to experiment with different sales approaches.
  4. I am very flexible in the selling approach I use.
  5. I feel that most buyers can be dealt with in pretty much the same manner.*
  6. I don’t change my approach from one customer to another. *
  7. I use a set sales approach. *
  8. I find it difficult to change my presentation style to certain buyers.*[/dropshadowbox]

Overall, reps positively rated sales training. But, being good is not good enough. The more profound effects on sales confidence are at the highest levels: We found training needs to be excellent (90+) to help reps exude confidence. The data also shows effective sales training increases goal clarity and adaptive selling skills. The latter has a huge (statistically speaking) effect on sales confidence.

Bottom line: Focus sales training on adaptive selling skills, particularly in dealing with difficult situations with critical customers. Include the adaptive selling skills scale to your recruiting toolbox.

Do Salespeople Deceive Themselves?

In a word, yes. Nearly 70% of the sales reps rated themselves higher on the very same questions we asked managers about each one. Some by a lot.  In fact, on a scale ranging from -5 (much worse than others in the department) to +5 (much better than others in the department), 55% of reps rated themselves one point higher than their managers did on all items. About one-third rated themselves two whole points or higher than their managers did.

What does this matter? The strongest effect on sales performance and sales effort by far is the margin between self-evaluation and manager evaluation. Sales confidence, DISC profiles and effort all significantly help predict the manager’s performance evaluation. None come close to the effects of being in touch with reality. Those with perceptions closest to (furthest from) their managers are the best (worst) performers.

Bottom line: If one-third of reps are clueless about their performances and more than one half widely overestimate relative performance, how well are we communicating? Given industry turnover issues, we expect more intentional and consistent one-on-one professional development and career goal setting meetings would reduce the deception gap and improve performance.

Conclusion

Grit does not have a direct effect on sales performance, but does help predict effort and job satisfaction. Effort leads to performance. Satisfaction leads to low turnover.

DISC behavioral styles offer guidance in knowing who will succeed. However, since sales confidence improves with experience and training in adaptive selling, DISC profiles should be only one factor considered in hiring.

Our view is that the DISC is better suited to teach adaptive selling and to get people in the right seats on the bus. Further, the DISC scales exhibit poor psychometric dimensions–which we are refining. If your organization would like to participate in the next round of studies with improved DISC scales, grit measures, and our impression management scales (AKA BS Meter), please contact us here.


How Managers Can Use this Research

Based on conference calls to review the research with participants, some offered comments on action plans.


Shawn McIntosh
Brett Zalaski

Brett Zalaski, Vice President Ticket Sales & Service, and Shawn McIntosh, Senior Manager of Inside Sales, Houston Dynamo

As someone who believes in continued learning and training, we loved seeing that confidence was so closely linked to a rep’s job satisfaction.

Markets change and the people we sell to are constantly evolving.  As sales managers it is critical to continue to focus on adaptive selling skills in order to keep our reps confident and happier.

Kris Dolen
Mark Johnson

Kris Dolen, Sales Manager, and Mark Johnson, Guest & Member Relations Manager, Tampa Bay Buccaneers

This research is extremely insight. We are excited to do more digging into the research and the works of Angela Duckworth. Our two biggest takeaways:

  1. Great questions to use for 1-on-1’s with each member of our team are to ask: “On a 1-10 scale, where 1 is the worst and 10 is the best,
    1. Where do you think you stand among your peers?
    2. Where do think your peers would rank you?
    3. Based on my score for you of (X), what do you need to do to get from where you are to where you want to be?”
  2. Understanding the DISC profiles:
    1. Will help me become more self-aware of the different styles among team members.
    2. Will help with Situational Leadership of my team, which is a great way to train & build confidence.
Rob Erwin

Rob Erwin, Director of Ticket Sales, Dallas Mavericks

This study gave our management some new concepts to consider with regards to recruiting and retaining a best in class staff.  I intend to apply more questions during the interview process to discover the candidate’s measure of grit.  I hope this will in turn help better predict their effort once they move past the honeymoon portion of their hiring.  Separately, given the statistics on reps deceiving themselves, I will continue to evaluate how we can clearly communicate with our staff regarding their individual performances.

Geno Fata

Geno Fata, Manager of Inside Sales, Arizona Diamondbacks

After reading “Grit” by Angela Duckworth last year, I’ve been increasingly curious as to how grit applies in a sports sales setting.  My hunch was “grittier” sales reps would be more likely to succeed over their less gritty peers.  It is valuable to know that in a sports sales setting, grit heavily influences both effort and job satisfaction, as those are two crucial indicators of success in our program.

We plan to use takeaways from this study in a few different ways – evaluating grit both in candidates and our current sales reps by administering the Grit Scale, and supplementing it with a few supporting questions that will either reinforce their Grit Score, or call it into question.

The study is also a great reminder of the importance of quality and on-going training, and regular perception vs. reality exercises between sales reps & managers – making sure our reps perceptions of their performances are on par with our evaluations of them.

The Online Ticket Buyer: By the Numbers

The Online Ticket Buyer: By the Numbers
by Kirk Wakefield -October 2016

Nationwide Study of Recent Online Ticket Buyers

Efficient and effective salespeople convert ticket buyers into season ticket holders and serve their needs. However, the secondary market is the primary market for many fans who do not differentiate between buying from StubHub, TicketMaster or the team’s website. What do these buyers look like? How do they buy? Where do they buy? What is important to them?

The Online Ticket Buyer Profile infographic offers an overview of our initial findings from a wide-ranging study of 688 recent online ticket buyers of tickets. Given the time of year and panel source, we draw primarily from NFL, MLB, and NBA ticket buyers, but also have representation from NHL and a few MLS buyers. All bought tickets within the past 12 months.

We will present more in-depth results and insights at the Baylor S3 Annual Board meeting, January 17-18, 2017. Students will present analysis & insights to the industry on December 5, 1-4pm. Guest judges are welcomed.


Redefining the sports fan

Redefining the sports fan
by Alan Seymour – March 2015

The sports fan redefined?

Are sports fans changing? Recent history and experience suggests they are, for two key reasons:

  1. The power of social media enables the fan experience to enhance the future prosperity of sports brands and properties against competing pursuits. The integration of social media with sporting events makes it unlike any other leisure activity.
  2. The growing importance of fan input on sports properties amidst social media dialogue continues to increase fan identification and engagement with all fan tribes & participants.

The premise that fans create fandoms and tribal associations can be considered a main attribute of sports patronage. Recent surveys & interviews I’ve conducted indicate strong emotional connections, as well as strongly evocative commentaries, among fan tribes.

Social media create distinct and meaningful platforms for fan tribes to flourish. The distinctive nature of immediacy, impact & personalisation enable teams and players to engage in direct dialogue with fans and supporters unlike ever before. The intermingling of Experts, Tribes, and Celebrities via social media exchanges may be referred to as the ETC Phenomenon.

The increasing prevalence of fan tribes

Research suggests fans exhibit characteristics of a cult. [ref]Moutinho et al (2007), “Surf tribal behaviour: a sports marketing application,” Marketing Intelligence & Planning, Vol. 25 Iss: 7, pp.668 – 690. [/ref] There are four distinct types of adherent to this cult of sport, characterized by:

  1. affiliation
  2. social recognition
  3. socialization
  4. symbolism

Football (soccer) is a classic example. Football‐devoted supporters form a kind of cult with a club. We can distinguish distinct fan typologies varying with the level of fan commitment. Members of the cult (or tribe) affiliate through the need for social recognition, socialization and symbolism. Devoted fans gain a knowledge of club association with sponsoring brands, but may not manifest an effective preference towards the brands. [ref] Dionisio et al, (2008), “Fandom affiliation and tribal behaviour: a sports marketing application,” Qualitative Market Research: An International Journal, 11 (1), 17 – 39.[/ref]

My recent research suggests that fan behaviours and associations with new media and technologies reflect their strong patronage and allegiance supporting sports club marketing with corporate partners. Social media involvement within the fan tribe enables new processes for teams to engage with fans. This changing sports media landscape and digital culture now permeates how fans view the team and its associations with corporate partners. How these may lead fans to increase (decrease) loyalty and patronage is open to future research.

Create microfame for fans

Fans are clearly the oxygen of sports business, integral to all strategies from every perspective. Teams should consider the notion of creating “microfame,” where the fan is the true star. Digital campaigns can focus on fostering the growth and community of the fan tribe by generating social recognition for individual fans. Such strategies build a strong socialization within fan communities. A good commercial example is the ‘We Believe’ culture with Harley Davidson followers.

https://www.youtube.com/watch?v=6k0wb6ZK1GM

 

Leading the tribe

To capture the changing fan, teams will need to be loyal, engaged & above all, digitally savvy. [ref]See, Sport Marketing 4th edit. Mullin, Hardy & Sutton (2014); also, see Rein et al (2006).[/ref]  Sports fans are driving new initiatives as key movers & shakers within the industry, rather than acting merely as spectators. The alignment with fans concentrates on involving them as brand advocates, as much or more so than as consumers of the sporting experience. In the new sports business landscape, what happens off the field is becoming as important as what happens on it. What is your team doing to lead the tribe?

Why the best teams and brands partner with academics

Why the best teams and brands partner with academics
by Kirk Wakefield – August 2014

Back in the early 1990’s, I started out with my Baseball Almanac contacting major and minor league teams to conduct research. Being at Ole Miss during that time, just an hour south of Memphis, I made quick friends with every pro franchise that came through town–among them the Memphis Chicks, Memphis MadDogs (CFL), Memphis Fire (USBL), and Memphis Redbirds, where I managed their fan research for three summers before leaving for Baylor in 2002.

During the ’90s, I recall a visit with a vice-president of marketing at a MLB team in the northeast about collaborating on fan research. He thought it was all very interesting, but said they weren’t interested because, “We already did one fan survey this year.”

Times have changed and MLBAM has taken the league and its teams to the front of the class in understanding its fans. However, one paradox I learned still holds today:

[dropshadowbox align=”center” effect=”lifted-both” width=”300px” height=”” background_color=”#ffffff” border_width=”1″ border_color=”#dddddd” ]

The best organizations always want to know more and the struggling rarely want help.[/dropshadowbox]

Why do the best get better?

Derek Blake
Derek Blake

Everyone who’s read “Good to Great” knows that the best leaders have an intense drive coupled with humility. This combination is what makes any leader get better because first they want to and second they know they don’t have a corner on knowledge. Derek Blake, Vice President, Partnership Marketing, La Quinta Inns & Suites, demonstrates this kind of leadership. Derek shares how this plays out in working with educators,

Business today is always evolving and we want to be on the cutting edge.  Working with academics who are experts in a very specific field of study – like corporate partnerships – just makes sense.  By giving back to our educational institutions, we help build the foundation of who students become in the future and that’s where we all benefit.

Some of the greatest franchises in the world are literally right up or down the road from us here in Waco and they always want to learn more. Some might think the San Antonio Spurs have accomplished all they need to after five NBA titles and operating above 99% attendance capacity. But from the top to the bottom of that organization, they always want to get better and are always open to new ideas, new methods, and new approaches to satisfy and grow the fan base.

Eric Sudol
Eric Sudol

The Dallas Cowboys are the NFL’s most valuable franchise, but their executives never hesitate to explore new ideas and to partner with us on research and classroom projects. Eric Sudol, Sr. Director, Corporate Partnerships Sales & Service at Dallas Cowboys, adds, “Teams are always busy and we can save time and money by partnering with academics when our interests overlap with their research needs.”

Much the same can be said of Baylor’s other partners around the state, both corporate and sports organizations. Further, aggressive teams like the Padres, Browns, Chiefs, and Dolphins work with us to take an innovative partnership approach with corporate sponsors to provide valid measures of sponsorship returns.

Why (not) work with academics?

WCAI Partners
WCAI Partners

ESPN and the Sports Analytics Conference partner with MIT. Wharton’s Consumer Analytics Initiative (WCAI) works with a variety of corporate partners (see right) and also works with sports teams. Yet, some corporate and sports organizations are hesitant to engage with academics.

Hey, I get it, we’re a little weird. Some of us are a lot weird. There’s a reason the Sloan Sports Analytics Conference is called a “nerdfest” and hosts a panel entitled, “Revenge of the Nerds.” But, for the fearful, here are three reasons you should work with academics:

  1. Focus. At research institutions like MIT, Wharton, and Baylor, faculty are experts in very specific fields. Aside from service responsibilities, typical workload is 50% research & 50% teaching. We spend 2-4 days a week, about 50 weeks a year, often for many years focused on finding out what’s new in one or two areas–which leads to the next point.
  2. Innovation. Academics are rewarded for publishing research. Research gets published (ideally) only when we learn something new. In contrast, syndicated research firms are rewarded for standardizing and commercializing past practices.
  3. Confidentiality. If you read the Sports Business Journal and popular press, you might think academics will want to publish the name of the team, the executives, and specific financial or customer data. In sharp contrast, academics do the opposite for two big reasons:
    1. Research is published when it’s generalizable to other situations. Sports is just the laboratory to study interesting phenomenon. We often don’t state the specific team or location because then someone would say it might not apply elsewhere.
    2. Research is based on the relationship between variables or fields in a data set–not the levels. In other words, we care about the relationship between X and Y, not the levels of X and Y. So, if you had data on fan demos and expenditures, we don’t care about the amounts–we care about how much variable X (e.g., tickets used) influences variable Y (e.g., renewals). What we report is the strength of relationships.
  4. Expense. What academics need most is data. If you can provide access to data, most academics will trade time for cool data. Obviously, our institutions and programs need support so we can conduct research and teach the future business leaders of the world. Partners understand that (e.g., WCAI, above), of course. But, essentially, all we need is access.

And we thank you for your support.

S3 Spotlight: Bill Glenn Explains–How to Expand your Skill Set to Advance Your Career

S3 Spotlight: Bill Glenn Explains–How to Expand your Skill Set to Advance Your Career
Bill Glenn
Bill Glenn
by Justin Pipes – February 2014

Bill Glenn is President of The Breakout Group, a boutique consulting firm that creates sales and marketing strategies to challenge norms and produce breakout results for brands and sports/entertainment organizations. His thinking is built on a foundation of deep sales and marketing expertise and both an agency and client-side perspective as it relates to integrated marketing programs in sports and entertainment, including big data and program analytics. Glenn has a both a Bachelor’s in Journalism and MBA in Marketing from the University of Missouri.

Build a Skill Set Foundation: Start with Sales

Glenn’s career started as a Marketing Associate with GTE (now Verizon) where he had three, six-month assignments in direct marketing, product management and sales. Although he doubted sales would ever be something he enjoyed, the brief experience felt like such a great fit he remained in B2B “consultative” sales and sales management for the next ten years.

Over this time, Bill learned the critical importance of blending strong customer relationships with a keen understanding of the assets you’re selling:

Great relationships uncover business needs while asset knowledge delivers the best client solution.  

Understanding this dynamic is the key to any successful business strategy. Through this experience, he was able to learn how sales and marketing are co-dependent functions in delivering client success. Additionally, Bill says, “Sales taught me the importance of having a broad knowledge base and understanding how all the parts of an organization work together to enable revenue.”

Build the Bridge: Understand How Sales and Marketing Work Together

Bill's Skills

After 10 years in sales, Glenn wanted to extend his skill set to brand marketing and marketing communications. He took over trade show marketing and strategy at GTE and was able to learn how messaging and technology at an event can deliver product value in a different context and what value this communication channel offers a field sales organization.

Bill quickly transitioned to leading GTE’s sports marketing and sponsorship group, where he leveraged his prior roles to understand how to leverage partnership assets in unique ways to produce value for both consumer and B2B target segments. His sales experience offered credibility and improved his productivity when interfacing with business and consumer-related field sales teams.  

Balancing the objectives of multiple organizations in this sponsorship role yielded a solid understanding of the company’s overall brand strategy and also improved the effectiveness of sponsorship investment. With this knowledge he was able to determine the best values in a sponsorship package.

Focus on Results: Learn About (and Learn to Like) Data

Check Box

Having a strong understanding of sales and brand marketing, Glenn decided to extend his skill set (adding research/analytics) and perspective (agency side) in joining The Marketing Arm where he launched the agency’s first Insights and Analytics practice.  In this role, he learned how to leverage primary and secondary research and measure program performance using statistical models to help clients understand the impact of marketing strategy and programs. It was a tremendous experience in learning how to find meaningful data points to both support and direct marketing and sales strategy.

Build Value: An Extended Skill Set Yields New Perspectives and Experience

Merrill Dubrow
Merrill Dubrow

Today, Bill is putting all these skills to use in consulting with brands and sports/entertainment organizations in creating integrated programs and building sales and marketing strategies that make a difference.

Merrill Dubrow, President and CEO of M/A/R/C Research, says, “Bill has a very diverse background having been on both the client and agency side. Very few people have the ability to offer clients sales and marketing expertise, including analytics, as well as an agency/vendor perspective.” Dubrow went on to say, “When dealing with clients, having been one of them, he is able to quickly gather keen insights thanks to this varied experience and perspective.” Dubrow’s comments reinforce how well Glenn knows sales and marketing and how extending your skill set over a career can pay dividends both personally and professionally.

Have Desire: To Learn

Keys to success

As an Adjunct Professor of Marketing, Glenn mentors many students and young professionals.  He says, “I just try to get students to think differently. The first 5-10 years of a career should be spent getting a broad base of perspectives and by extending your skill set through experience.”

Glenn says he hears many say they “want to work in sports” but that desire depends heavily on understanding sales and marketing. He continued, “It is much easier for me to teach someone the sports business than it is to teach marketing and sales skills. The latter, for the most part, is developed through experience.”

Glenn also coaches students to concentrate less on who they’re working for and more on the role their current job will play over the course of their career. In other words, what’s your dream and what perspectives and experience will enable you to reach that destination?

How can properties support sponsorship rate cards?

How can properties support sponsorship rate cards?
by Kirk Wakefield – January 2014

Is sponsorship more about media or meaning?

Why should brands pay for the rights to be an anchor sponsor of an NFL, MLB, or NASCAR property? Can these properties defend their rate cards that afford brands the rights to communicate with their fans via the property’s venue, television, radio, website, social media, special events, and logos/marks?

anne rivers“We have been very successful showing the success of sponsorship to build brand equity, and in turn firm value, which has been harder for those trying to use impressions to capture ROI.” ~Anne Rivers, SVP, Global Director of Brand Strategy, BAV Consulting

Sponsorships activate the brand in the minds of passionate fans across multiple channels to achieve brand objectives. If it were just about buying media and exposures to gain a particular audience, there are typically cheaper (CPM) options than sponsorships. But, exposures can be important, because it gives some idea about the potential to reach passionate fans. What it doesn’t tell us is if they are paying attention.

So, the question becomes less about media and more about meaning.

Brand managers are smart. They know single exposures (or even a few) of a brand message have no meaningful impact on consumers. They know people pay more attention when they are highly engaged and passionate, which is what people are about their favorite sports, teams, and players. They also know consumers think, feel, and act more positively toward a brand if the message is received and reinforced through multiple channels.

This brings us to the sponsorship question of the day: Is paying the property for the rights to use their assets worth it?

Evidence for rate card support

[dropshadowbox align=”right” effect=”lifted-both” width=”350px” height=”” background_color=”#ffffff” border_width=”1″ border_color=”#dddddd” ]
matt webb“Brands have had an overwhelmingly positive response to our analytical approach to measurement. Our ability to provide our partners with measurable, goal-oriented results is invaluable and allows us to truly be a solutions provider.” ~ Matt Webb, Director, Corporate Partnerships, Cleveland Browns[/dropshadowbox]After years working with brands such as AT&T, TXU Energy, HEB, and a variety of other brands in cooperation with The Marketing Arm, this past year I began working with clients in NASCAR, MLB, and the NFL to determine if anchor sponsors receive more bang for the buck than mid or lower level sponsors.

We learned two simple lessons that we’ll complicate with colored charts and graphs.

#1 Attendance means nothing. Engagement means everything.

Fans can spend up to 36 hours over three days at a NASCAR racing event. And many do.  But the number of hours at the track has no significant correlation with whether or not fans recognize the activation of brands like Ford, Coke, Sprint, and SpeedTV. Instead, it’s the frequency of engagement with sponsors–which we measured using RFID tags connecting fans with sponsor activation locations–that predicts whether or not fans distinguish the brand as a sponsor and not its competitors.

bav#2 More channels increase relative brand equity.

With our partner, BAV Consulting, we measure a brand’s energized differentiation (see inset) for not only the sponsor, but also competing brands who may be sponsors or ambushers. In short, sponsors routinely outperform non-sponsors (see our MIT Sports Analytics paper). But, what about anchor sponsors versus secondary sponsorships?

Working with our NFL and MLB team partners, we compare multiple categories of anchor versus secondary sponsors in terms of fans’ recognition of the sponsors’ use of property assets: stadium signage, stadium messages, special game promotions, website, social media, television, radio, and use of team marks in advertising/POP.

If you’re the kind of stats nerd that attends and understands the data analytics presentations at the MIT or Wharton conferences where we’ve presented, then the charts below are for you. If not, here it is in words:

  1. Activation not exposures. How often the fan attends, watches or listens to games increases the odds of recognizing the brand’s sponsorship activation (the green boxes), but does not have a direct effect on the brand’s energized differentiation (the red boxes). This reinforces our NASCAR findings: Just being there doesn’t count. The brand must be activated in the minds of the fans.

    meaning not media
    Table 1
  2. Multi-channel communication. The greater the multi-channel activation among the property’ eight assets, the greater the energized brand differentiation of the sponsor (dark green boxes).
  3. Anchors = activation. Fans recognize anchor sponsor communications across more channels than they do for mid-level or low-level sponsors in the same categories (tan boxes). In other words, the additional assets pay off with greater activation of the brand among fans.
  4. Brand equity effects. For the eight categories we tested, each additional effective channel increases energized brand differentiation by 6-7% (the regression equation in Table 2 is an example of one anchor sponsor for the NFL team). Overall, the number of effective channels explains over 90% of a brand’s asset value in the minds of fans. This is a big number.

    Table 2
    Table 2

Conclusion

Some might still say, “So, what? Where’s the big payoff?” We’re glad you asked.

Consistent with our findings in each category, the chart below shows what happens to market share among those fans who recognize activation across multiple channels between the anchor sponsor and the low-level sponsor in the same category.

Both sponsors are national brands with otherwise strong brand equity according to BAV Consulting. But, the payoff for being the anchor sponsor for the NFL team brings substantive market share increases (4.4% ) for each additional effective channel.

If your team or brand would like to learn more, please tweet (@kirkwakefield) below or email. Happy to help!

market share

How would you describe your social media fans to sponsors?

How would you describe your social media fans to sponsors?
by Kirk Wakefield – August 2013

Brands highly prioritize social media engagement when partnering with sports properties. But who are these social media fans? Who are we reaching with the team’s social media?

Earlier this year we sampled registered users from a professional franchise (N = 469). The chart below displays the results of a cluster analysis grouping fans based on similar characteristics within the group, but significantly different between groups. These groups are not significantly different from each other in terms of ethnicity, household size or income.

Group 1: Passionately engaged

About a quarter (23%) of those studied frequently(66% of the team’s games) used social media (including texting, Facebook, Twitter) to send or receive information related to the team and games. This extremely passionate group (Passion Score = 95) is relatively young (M = 40) compared to other registered users of this team (M = 49). That the database skews older reflects typical season ticket holders, but may also indicate the need for teams to attract younger fans or at least get them to sign-up.

Looking at the chart, what else do you see? This group is more likely to follow on the team’s website, watch games on TV, and listen to games on the radio.

Since most of the sample are males (69.5%), the results show this group (64% male) is more likely to include females than the other three groups. They’re more likely to be single (61%) than the other groups. And, they’re relatively likely to have some form of season ticket plan (35%) and live within the metro area (e.g., within 20 miles).

Social Media Fan Groups

*Percentage of  all games in a season

Characteristic  Passionately
Engaged
Distant
Lovers
Passionately
Disengaged
Dispassionately
Disengaged
Social Media Usage*

  • Send/receive text messages about the game
  • Post messages/comments on social media (Facebook/Twitter/Websites) about the game.
66% 36% 10% 11%
Passion for the team (100 max) 95 90 90 63
Games reported attended* 23% 8% 21% 11%
Team Website: Visit the team website before, during, or after the game.* 73% 68% 47% 22%
Radio: Listen to games on the radio or internet.* 54% 29% 25% 13%
TV: Watch games on screen (TV, Internet, DVR).* 65% 49% 51% 24%
News: Follow the results in the newspaper or internet.* 78% 89% 85% 23%
Distance from venue (miles) 20 113 19 25
Age 40 46 49 40
Males (Overall: 69.5% male) 64% 81% 72% 68%
Married (Overall: 52.5% married) 39% 66% 64% 47%
Fan base (% of fans surveyed) 23% 10% 32% 34%
Season plan member (partial or full) 35% 13% 45% 29%

Group 2: Distant Lovers

Although not a large segment (10%), this passionate (Passion Score = 90) fan group travels in from outside of town (average distance of 113 miles) a few times a season to attend a game or two. These somewhat older (M = 46) fans sometimes use social media (36%) to find or share information about the game, but they’re most likely to follow the team news through the newspaper or online (89%).

This group is less likely to tune in to TV (49%) or the radio (25%), which may be more a function of availability in their distant markets than interest. Consequently, the team’s website (68%) is a good way to reach this crowd, in addition to the relatively frequent social media use compared to the next two groups of fans.

Group 3: Passionately Disengaged

Although this group is as passionate as the second group (PS = 90) and attend about as many games  as the first group, they rarely engage via social media (10% of games). This older group (M = 49) really don’t pay much attention to games on the radio (25%) even though they live in-market (~19 miles). Nor are they particularly avid viewers of TV broadcasts (51%). They do faithfully follow the team through the news, either print or online (85%).

apple workshops

This group is most likely to have some form of season ticket package (45%), particularly full-season.

Fans in this segment need to be energized as team partners to engage with the team. One suggestion is to partner with your local Apple store to offer fan workshops, perhaps specializing in the use of team apps. My 85 year old mother is on Facebook all the time, but would benefit from knowing what else to do with her iPad. The size and age of this segment suggest efforts like these could be worthwhile, because they also have higher discretionary income that would otherwise be spent on their grandchildren.

The Houston Astros target this older season ticket base by providing a headquarters for STHs, equipped with multiple iPads and other devices. And, as you can see from the cover photo, it’s sponsored.

Group 4: Dispassionately Disengaged

This relatively young (M = 40) are not particularly passionate fans (PS =63) and they show it by not following the team through virtually any media. They attend games (M = 9)a bit more than the out-of-towners in group two and live a little further out (M = 25 miles) than the two most frequently attending groups (1 and 3).

This group is the most likely to have mini-plans  among the four groups, which suggests they get packages to occasionally go to the game–perhaps to entertain clients or go with friends–but they aren’t big fans.

One of the best ways to enhance fan passion is to provide direct contact between players and fans. Targeting this group with relevant events may be a way to move them into one of the other passionate groups, which in turn leads to more media usage and better fans for your partners.

3 basic questions you should ask premium seat buyers

3 basic questions you should ask premium seat buyers
by Kirk Wakefield – July 2013

Preparation is the key to selling efficiency

Preparation is on anyone’s top 10 list of what makes successful salespeople. Successful preparation is based on asking the customer the right questions.

Knowing the right questions is one thing. But knowing the right answers can lead to more sales and more efficient selling (i.e., close ratios).

A little research

One of our NFL client partners wanted to help their sales staff get a head start in understanding individual suite rental customers in preparation for the upcoming season.  In the two weeks after the season ended we collected responses from a sample of 20% of individual decision makers from the previous season’s rental customers. Among other things, we wanted to know the answers to three basic questions and the relationship between these answers and how likely customers would be to buy again and refer others.

Three basic questions

Corporate buyers are likely to be passionate fans, but that’s not the reason they are buying. They are buying because they believe potential clients are passionate league or team fans. So, sure, it helps if they love the team. But in an NFL city, odds are most everyone locally or regionally has at least some affinity for the team. This leads to the first basic question you need answered.

Where does your business come from?

The results show the vast majority use the suite to build relationships with local (71%) and regional (84%) customers. However, those indicating they also have extensive global (37%) and national (68%) markets are significantly more likely to recommend renting suites to others, representing your best promoters and referral sources.

Know their business

If the premium buyer’s customers are primarily local and regional, promoting the team angle may be useful. But if their customers are more national or global, then we really need to ask what else influences the choice to rent a suite.

What influences which game you’d like to select?

Too many salespeople assume price is the main issue. Don’t start there.

From our sample, almost 1/3 aren’t really concerned about the price. More importantly, concern about the suite rental price had no bearing on whether or not they’d be likely to rent again next season. Statistically speaking, what did?

 

know what influences

 

The most likely return suite rental customers were those who wanted to (1) know who the opposing team was, (2) review the entire schedule when it was released, and/or (3) who were planning a special occasion.

Why are those good answers for you? Because it means they’ve already decided in favor of buying, the question is which game? Greater concern for knowing (a) the kick-off time, (b) day of the game, or (c) the price had no influence one way or the other on likelihood of using a suite the next season.

The upshot is that if you focus efforts on prospects in a true-decision making mode (team, schedule, occasion), your close ratio should be higher.

Compared to other options, how would leasing a suite from us help you win business?

We aren’t the only game in town. Our clients can entertain in other sports & entertainment venues. The heart of this question is what is it about leasing from us that helps meet your objectives?

know why buy

What we see from our study is it’s not what you think. Most don’t think leasing a suite guarantees closing a business deal.

The big insight is that a suite offers the best chance the invitation will be accepted and won’t fall through. What your clients really want is just to make sure they have a chance to close a deal.

What’s the worst fear when we throw a party? The people we wanted to come don’t show up. It’s been the same since high school; now we’re just playing for different stakes.

A second big insight is predicting who will be our best promoters and source of referrals. The ability to predict a client’s NPS (Net Promoter Score) is highest among those who strongly believe the suite provides the best return on objective (i.e., the chance to sell) and is the best choice for doing so in the market (viz., “differentiator in the customer entertainment universe”).

Conclusion: Act

Premium sales isn’t as simple as asking these three basic questions, but it sure helps. The key is in preparation. Teams like those who commissioned this research know that knowledge is power. Now let’s go get some.

Which comes first: Happiness or success?

Which comes first: Happiness or success?
by Shawn Achor – June 2013

What is the connection between happiness and sales?  Most salespeople tell me it’s an easy question:  “When I’m selling then I’m happy.”

How could so many salespeople possibly be wrong?

Undeniably, we feel happier after a sale, but that common answer is actually holding down our happiness and lowering our sales.

Researchers at Harvard, Yale and UPenn have been studying this issue now for two decades. We found predicting who will be a good salesperson is relatively easy.  We just look for optimism.

Optimists beat pessimists

When we ran the numbers, optimistic salespeople outsell their pessimistic counterparts by 37% cross-industry.  At MetLife, the top 10% of optimists were outselling the other 90% by another 90%! That’s huge, and here’s why.

Most professionals face daily setbacks, but the life of a salesman is, almost by definition, fraught with failure and rejection. In many businesses, only one in ten pitches leads to a sale, meaning that those salesmen experience rejection 90 percent of the time.  (That was also my dating rejection rate in high school.) This can get pretty demoralizing after a while, which helps to explain why there is such high turnover, stress, and depression.

But here’s where it gets interesting: it turns out if you wait until a sale to be happy, you’re following a broken formula for happiness and success.  We think:

[dropshadowbox align=”center” effect=”curled” width=”375px” height=”” background_color=”#ffffff” border_width=”1″ border_color=”#dddddd” ]

Wrong thinking

I will work hard, then I’ll be successful, then I’ll be happy. [/dropshadowbox]

But every time you were successful in the past, what happened? Your brain changed the goalpost of what success looks like.  If you hit your sales target last year, what did you do this year?  Raised it.  Happiness after a success (like a sale) is very short-lived.

But flip around the formula and try to create happiness before the sale, and our success rates rise dramatically. (Want to know more about the effects? Watch this video on TED.com.)

[dropshadowbox align=”center” effect=”curled” width=”450px” height=”” background_color=”#ffffff” border_width=”1″ border_color=”#dddddd” ]

Right thinking

If I create happiness before the sale, then I’ll be more successful selling. [/dropshadowbox]

The Happiness Advantage

In The Happiness Advantage, I describe how positive brains have an unfair advantage over negative or neutral ones.   Positive employees:

  • have higher levels of productivity,
  • produce higher sales,
  • perform better in leadership positions, and
  • receive higher performance ratings and higher pay.

So how do we create happiness before success?

  1. Realize happiness only exists in the present, otherwise it will always be off in the future (never).
  2. Train your brain to become happier.
  3. Happiness is not only a choice, it is a work ethic:
    1. Write down 3 new things you’re grateful for each day for 21 days. This rewires your brain for optimism.
    2. Journal for 2 minutes each day about a positive experience. This is the fastest intervention for seeing the meaning embedded in your work.
    3. Write a 2 minute positive email or handwritten note to someone. This deepens social support, the greatest predictor of long term happiness. 

Evidence

One way to train your brain to become happier is to smile more.

At a group of hospitals in  post-Katrina Louisiana, we trained 11,000 employees to just smile and make eye contact in the hospital hallways.  Within 6 months, the number of unique patients rose and their likelihood to refer the hospital based on good care skyrocketed. 

At KPMG, I found that just teaching this concept (happiness first; success second) and practicing a positive habit can create greater happiness and job effectiveness 4 months later, in the middle of the worst tax season in recent history.

Happiness is a choice, but also an incredible advantage.  Do you want to see your true sales potential? See what you can do when your brain is set on positive!

[dropshadowbox align=”center” effect=”lifted-both” width=”650px” height=”” background_color=”#ffffff” border_width=”1″ border_color=”#dddddd” ]Chip MaxsonI can’t help but think back to some of the best sales people I’ve worked with and their attitude – pretty positive. I also can’t help but think of the people I’ve let go in the past year, all very pessimistic. Another interesting angle to look at would be the affect an optimistic person has on a potential client. Essentially, people like to buy from people they like and people like positive and friendly people. ~ Chip Maxon, Sr. Vice President, Business Operations, Sacramento RiverCats[/dropshadowbox]

Part 2: How to interview with the pros

by Jeannette Salas – February 2013

We covered how to get the interview here. Now you’ve made it to the face-to-face (virtual) interviews. What do you need to do be prepared?

Preparation

  1. Research. Thoroughly research the organization prior to interview.
    1. How is the team marketing and advertising?

      Insights from Heidi Weingartner, Chief HR Office at the Dallas Cowboys and George Prokos, Sr. VP of Ticket Sales and Services at the Dallas Mavericks
      Insights from Heidi Weingartner, Chief HR Office at the Dallas Cowboys and George Prokos, Former Sr. VP of Ticket Sales and Services at the Dallas Mavericks.
    2. How are they involved in the community?
    3. Who are the C-level executives and managers?
      • Know their names and positions.
      • Look up their backgrounds/bios (team website, Google; LinkedIn)
  2. Questions. Come up with at least five questions to ask about corporate culture, likes/dislikes, challenges, etc. Why? Good questions:
    1. Should be written down.
    2. Show interest.
    3. Allow you to get FREE valuable information from someone in your career choice on how to move up and be successful in your career.

The best question a candidate asked me was, “What do you like and not like about your position?” Asked sincerely, this question showed a personal interest in me and what goes on here every day.

The interview

How important is this interview to you? If you are selected from the 100’s of resumes received, I’m assuming it should be important to you. Some of these tips are for in-person interviews, but apply the same principles for virtual interviews.

  1. Attire: Dress professionally (suits). More on making the best first impression in the next column.
  2. If in-person:  Arrive 10-15 minutes early. Don’t show up an hour or two early.
  3. Turn off your phone before the interview.
  4. No, turn it off. Silent is not good enough.
  5. Be ready to go once you step outside of the car.
    1. Have your hair and/or makeup done before arriving.
    2. Put your jacket on before you exit the car.
    3. You don’t know who’s watching or who you’ll meet when or where along the way.
  6. For virtual interviews:
    1. Make sure whatever is in camera view sends the right signals.
    2. Don’t locate in a noisy room.
    3. Dress like you were doing an in-person interview (suits).
  7. Have a padfolio and pens (and extra copies of your resume if in-person).
    1. Some employers intentionally “forget” to bring your resume to the interview.
    2. Someone may forget a pen.
    3. Be prepared.
  8. SMILE!!! Everyone is watching you.
    1. That person you don’t think is watching is the person who talks to the manager right after you leave.
    2. Beware of windows – people like to observe and will give feedback.
  9. Be courteous. Yes, the receptionist counts. Double.
  10. Exude confidence.
    1. Firm handshake.
    2. Clear greeting, by last name (Mr. Smith). Do not be overly familiar until they say so.
    3. Make eye contact during interview. (But, don’t stare the person down.)
  11. Relax and be yourself, but remain professional regardless of interviewer’s professionalism.
    1. Removing jacket, unbuttoning tie, etc. is not acceptable.
    2. Be personable, but not overly excited.
    3. Keep an engaged, positive posture – no slouching.
    4. Don’t stare.
    5. Don’t fidget:  Biting nails, playing with hair, tapping pen, cracking knuckles, etc.
  12. Stay focused.
    1. Listen to what is being asked and answer the question.
    2. Ask for clarification if you don’t understand question.
    3. Don’t ramble.
  13. Be confident in your answers:
    1. Don’t answer with an upswing inflection, where the cadence of the voice rises as though every sentence ends in a question mark.
    2. Be accountable. Everyone makes mistakes!!!!! Explain what you learned from mistakes and what you did to ensure it was not repeated.
    3. Be able to explain gaps in employment clearly.
  14. Never bash former employers or colleagues. This gives a clue as to how you might view your next employer and colleagues.

Closing the Interview

If you are interviewing for a sales position, they are looking for someone who can close a deal.

  1. Close the interview.
  2. Highlight why you are the best candidate for the position based on the needs identified during the interview.
  3. Show how your strengths make you a good fit for the position.
  4. Show enthusiasm!!!!
  5. Thank interviewers for their time and again give firm handshakes.
  6. Say goodbye to the receptionist by name (s/he always counts).

Next time we’ll cover in more detail steps to success getting jobs in professional sports, including specific do’s and don’ts of professional attire for interviewing, as well as resumes, follow-up, and cover letters.