As anyone who has worked with sports clubs, sports events or sporting associations will know, one of the biggest challenges facing marketers is the issue of maintaining or growing attendances on match day.
It's something that I've been directly involved with at work, and have spent a lot of time considering and researching. Just how can you motivate people sufficiently to get them through the turnstiles?
I'd like to present two ideas here, both of which are based on the group buying principle, and are both companies that I've stumbled across whilst researching this area.
But before I get into that I need to explain some of the flaws and criticisms of group buying to provide some context to this piece.
Group Buying: The current model is flawed
Now if you're anything like me you're sick to the back teeth of the likes of Groupon and Living Social. Basically unless you want white teeth, all of your hair removed or simply fancy colonic irrigation then they don’t really provide much value.
But more than that, there is a growing backlash against group buying deals as the business model that these companies force on (typically) small businesses is not sustainable in the long run. On top of that consumers are already showing signs of apathy for these deals so their relevance is dwindling.
For me however these two criticisms are based on the fact that group buying companies are targeting the wrong products and sectors.
In my mind, they lend themselves perfectly to the sports industry. Let me take these two criticisms and explain why.
Criticism number 1: Impact on business model
A sports event is something which has a fixed / defined sell by date. Whereas a teeth whitening service never really runs out, once the sports event has finished, the opportunity to generate revenue from that product or service has passed.
In this sense it’s similar to fresh groceries (bear with me here). For years supermarkets have understood that fresh produce has a defined sell by date, and so they have a whole team dedicated to reducing the price on the last day of sale. The logic goes, we might as well get some money for it or we’ll get nothing at all.
And that logic applies perfectly to sports events. If, on match day you know that you still have 5,000 tickets left to sell, why not sell them at a discounted rate? This is where Crowd Seats come in. Crowd Seats (currently US only) aims to provide daily deals for sporting events – check out their website for more information.
I can see this working perfectly for clubs but there is one big problem with this approach – what happens to existing fans? We all know how annoying it is when you’re sat on a train or plane and you find out that the person next to you has spent half what you have. This would only be highlighted when it comes to sporting events where people have strong allegiances to specific teams, and have spent lots of money on a season ticket.
And that’s where the next company that I wanted to talk about comes in. The company in question is called BuyaPowa. BuyaPowa is effectively price drop TV but online. The idea is that the more people that commit to purchasing the lower the price goes.
People are actually incentivised to go out and promote the event on behalf of the club / association so that they can benefit from the lower price. This to me seems perfect for sports clubs. It would also go some way to negating the criticism previously mentioned as you could prove that you’ve actually had to work for your discount.
Currently BuyaPowa is focusing on consumer goods. It seems to be working well for them (I actually managed to get some great bike lights for £7.99 whereas they should be around £25 - result), but it must be relying on having fantastic buying teams who can negotiate knockdown prices for goods, thus ensuring a margin for BuyaPowa. But surely they would be better served approaching a club like Fulham FC, who traditionally struggles to sell out their ground?
Criticism number 2: Consumer apathy
This one’s pretty simple really. Sports fans are the ultimate brand advocates. And sports fans are hardly going to suffer from apathy when they’ve got the opportunity to purchase tickets for their favourite team are they?
The other benefit that companies like BuyaPowa and Crowd Seats have to combat consumer apathy is the ability to target specific groups. Sports fans are an instantly segmented audience, and therefore deals can be perfectly targeted at exactly the right people.
And this has become increasingly easy to do as social media use becomes ubiquitous. Most sports teams now have strong social presences, so why not harness these? Why don’t Crowd Seats or BuyaPowa create a white lable facebook ‘pop-up’ shop utilising f-commerce and approach teams and clubs?
Summary
I completely buy the criticisms of group buying, to me they make perfect sense, and were obvious once the initial hype had worn off. However, by taking the model and applying it to industries and sectors which have huge brand advocates and rely on products which have defined sell by dates they can keep themselves relevant. As always, the US leads the UK in this instance, and I’d love to see companies like BuyaPowa and CrowdSeats really push into the sports industry.
But what do you think? Could they make a success of themselves in the sports industry?

