Watching the Bottom Line From Box Seats
Sports teams are using software to help season ticket holders allocate their seats
August 6, 2001 12:00 PM ETComputerworld -
Call it a new twist on customer relationship management: A company buys a product it knows its customers need and then gives it to them as a complimentary perk.
Sound far-fetched?
Several professional sports teams and venues don't think so, including the Arizona Diamondbacks and the operators of America West Arena in Phoenix and the Georgia Dome in Atlanta.
For sports teams and stadium operators, revenue from food and other highly profitable concessions increases as the number of people attending games and other events increases.
Sports teams also know that season tickets and luxury boxes are big investments for corporations - investments they might not continue to make if they think they're wasting their money. So it's in everyone's best interest to ensure that top-flight customers always use their tickets.
"Millions of tickets and suite seats go unsold or unused each year, which equates to billions of dollars in lost potential revenues" from unsold food and beverages, sponsorships, tickets, merchandise and parking, said Robert McAuliff, chairman and CEO of Season Ticket Solutions Inc., a Chicago-based developer of ticket management products.
"Season ticket holders . . . miss 25% to 50% of games every year," he adds, pointing out that 80% of season tickets are corporate-owned.
That's why clubs like the Diamondbacks are paying $25,000 to $30,000 per year for the privilege of keeping their top ticket holders happy by providing them with free ticket management software, according to McAuliff.
Value-Added Service
Season Ticket Solutions' products, UsherPro 2001 ticket management software and UsherPro2001 Web, a Web-based version, allow ticket holders to manage, track and allocate blocks of seats. They also allow suite owners to monitor the status of all of their tickets: whether they're being used, who's using them for each event and who has used them in the past.
"Successful management of luxury suites is a very high priority for the Diamondbacks," said Diney Mahoney, director of suite services for the team, whose season ticket holders use UsherPro 2001 to track their tickets.
The Diamondbacks, who play at Bank One Ballpark in Phoenix, are engaged in a joint venture with the Phoenix Suns basketball team and the operators of the Suns' America West Arena. Eighty percent of the owners of suites at the arena and the ballpark are customers of both teams.
"[Ticket holders] make a big investment in their [luxury suites]. They pay $98,000 to $120,000 a year for the 12-seat suites, and they sign contracts for seven to 10 years. It's a serious commitment," said Charlene Sprehe, Mahoney's
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