Written on June 10, 2009

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Jeff Eisenberg

Small-Market Success: How the Milwaukee Brewers Sold 43% More Season Tickets

By November 1992, in the face of rising salaries and falling TV revenues, it was clear the Brewers had to increase existing revenue streams and develop new ones to ensure the viability of a major league team in Milwaukee.

1992 team performance certainly provided a positive selling environment. Ninety-two wins and a run at the divisional title left fans upbeat. However, following a trip to the 1982 World Series with an immensely popular team, only 5,241 season tickets had been sold for the 1983 season. We knew we could not count on above-average team performance alone to take us where we needed to go.

So we set about planning our approach. The three major components of our marketing strategy were: 1) database and market segmentation, 2) season ticket plan repackaging, and 3) direct sales.

Database Development and Market Segmentation

Major strides were made in developing our database and understanding our market. A marketing information module, fully integrated with ticketing, was added to our new computer system, providing the capability to collect important customer and prospect data. This additional data and associated market research provided revealing insights into our market. Using this information, we formulated our strategy for the 1993 pre-season sales campaign. The highlights:

77% of our season ticket revenue came from business accounts. We determined that while substantial growth would come from new business customers, we were underachieving among individual "consumers." We had to find a way to entice these consumers to convert their individual-game buying patterns into mini season packages.

Not surprisingly, we found that larger business spend more on tickets than smaller ones. While 18.3% of the businesses in our primary market were of 10 or more employees, these larger businesses accounted for 41.4% of business season-ticket revenue. It was important to allocate substantial resources toward this business segment. However, that left 58.6% from one-to-nine employee businesses, so we had to cost-effectively reach them (about 40,000) and aggressively persuade them to buy season packages as well.

We updated our geographic source numbers, confirming that 80.1% of our season ticket revenue came from our immediate four-county region. But more important, we pinpointed the specific outlying zip codes that contributed most heavily to the remaining 19.9%. This gave us more definite targets and justified spending more sales time and resources outside our immediate market.

Surveys and focus groups clarified why people buy season tickets and what benefits they value most. The top four benefits emerged loud and clear: the best seat locations; post season ticket privileges; priority seating in the proposed new stadium and our flexible exchange policy. Other benefits were mentioned, but less prominently. This information guided us in developing out brochure, advertising and sales presentations.

Season-Plan Repackaging

One of the more successful elements of the campaign was the repackaging of our mini season packages. Prior to 1993, we marketed the "American League Sweep" (ALS) 13-game plan, offering six different lists of game dates from which to choose. Each of the six ALS date lists featured one game versus each American League team.

To provide more variety and some marketing personality, we set out to reshape mini packages. The resulting "product line" of 16- and 13-game packages was extremely well received by the market. The "Arch Rival" Pack" (16 games) featured our most popular opponents. "Hot Summer Nights" (16 games) consisted of games between May 28 and September 10. The "Game Day Pack" (16 games) packaged all day games. The "Sunday Pack" (13 games) was retained in its same format.

In 1992, our mini packages had accounted for $276,210 (4.8%) of our season revenue. In 1993, that total reached $1,569,720 (16.8%). The revamped approach to our mini season plans attracted many customers, both business and individual, who would have otherwise spent little or no money with us.

The Sales Campaign

By mid-November 1992, our season sales campaign was in full swing. Our sales force consisted of three unites: 1) Outbound: 22 Telephone Sales Reps (TSRs, a.k.a. telemarketers); Inbound: 4-6 reps handling incoming phone calls and office drop-ins; 3) Gold Club: our 47-person volunteer sales group.

The TSRs called only on businesses during the day. Brochures and customized letters were prepared in 16 batches of 3,000-3,500 companies and stored at the mailing house. Batches were mailed in a phased fashion such that every company would receive a TSR phone call within 3-5 days of receiving the brochure.

Over the course of the campaign, our TSRs made 188,182 dials and 22,805 telephone presentations in the pursuit of 49,370 business database leads.

To reach the average fan, brochures and a follow-up "tickler" piece were mailed to approximately 40,000 individuals with recent single-game ticket histories. Special customized letters and follow-up calls were directed at those who had purchased seven or more games in 1992.

The Gold Club did what they do best?work on a peer-to-peer basis with their personal contacts in the area. Nothing can match the persuasion of a respected business person, especially when they display their commitment by spending their own free time on the project.

Supporting these personal sales and direct mail efforts was an integrated electronic and print media campaign.

Radio was chosen over television in order to generate desired repetition. A series of 10 half-page newspaper advertisements began running in the sports section in min-January. Advertising copy focused on seat location, our flexible exchange policy and our new mini season packages.

Results

The results were very satisfying. We grew our season ticket base by 43% to a franchise record of 9,018 FSEs (full-season equivalents), well beyond the previous year's total of 6,326.

Our incremental season sales totals of 2,832 full-season equivalents (FSEs) and $2,638,794 were broken down as follows: TSRs: 1,491 FSEs for $1,382,517; Inbound: 831 FSEs for $778,435; Gold Club: 510 FSEs for $477,842.

The TSRs sold 1,917 accounts for a close rate of 3.88%. Per sale, TSR accounts averaged .78 FSEs and $721.

The 6,186 FSEs sold via renewal was accomplished through a rigorous campaign and assisted by bumping up our 27-game plan to a more logical 40-game plan.

On the Other Hand...

No project review would be complete without mentioning the things that did not work. For one, we publicly heralded our reaching the 8,000 FSE plateau, a mark never before achieved in Milwaukee. Some feel this reduced the "urgency" to buy among even those concerned about the Brewers' future in town. In the last month of the campaign, it even seemed the market was tiring of the "civic pride" theme.

In addition, while many local business CEO's and leaders wanted to help as members of the Gold Club, it was difficult for them to find the time necessary to close a season ticket sale.