Meter Numeros
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METER NUMEROS CRM Field Lab | Sport Lisboa e Benfica Acknowledgement The group would like to express their gratitude to professor Elizabete Cardoso for her availability, help and guidance during the semester. We would also like to thank SL Benfica for accepting to do this project with us and namely our contacts in the club - Tiago Caldeira and João Duarte for joining Us in this project and being available to help us throughout the semester. CRM Field Lab | Sport Lisboa e Benfica | 2 1 | Table of Contents 2. Executive Summary; 11 3. Challenges and Methodology; 12 4. Football Market; 13 5. SL Benfica 15 6. Internationalisation; 16 7. Internationalisation: China; 17 1. Sports; 17 2. Football; 18 3. Macro Environment: PEST; 19 4. Micro Environment: 3Cs; 20 5. SWOT; 22 6. Best Practices; 23 7. Entry Modes & Products; 24 8. Business Offices; 25 9. Process; 26 10. Digital Channels; 27 11. Recommended Strategy. 28 CRM Field Lab | Sport Lisboa e Benfica | 3 1 | Table of Contents 8. Internationalisation: United States of America; 32 1. Sports; 32 2. Football; 33 3. Macro Environment: PEST; 34 4. Micro Environment: 3Cs; 35 5. SWOT; 37 6. Best Practices; 38 7. Entry Modes & Products; 39 8. Business Offices; 40 9. Process; 41 10. Redesign Casas do Benfica; 42 11. New Products; 43 12. Digital Channels; 44 13. Recommended Strategy. 45 9. Internationalisation: India 48 1. Sports; 48 2. Football; 49 3. Macro Environment: PEST; 50 4. Micro Environment: 3Cs; 51 CRM Field Lab | Sport Lisboa e Benfica | 4 1 | Table of Contents 5. SWOT 54 6. Best Practices; 55 7. Entry Modes & Products; 56 8. Business Offices; 57 9. Process; 58 10. Digital Channels; 59 11. Recommended Strategy. 60 10. Data Analysis; 63 1. Membership Descriptive Analysis; 64 2. Ticket Purchases 65 3. Bancada Família 68 4. Merchandising Analysis 70 5. Churn Analysis 72 6. Value per Member 79 CRM Field Lab | Sport Lisboa e Benfica | 5 1 | Table of Contents 11. Research & Recommendations 82 1. Reasons 83 2. Customer Segmentation 84 3. Website 85 4. App 86 5. Machine Learning 89 6. A Framework for Devising and Measuring Marketing Campaigns 90 7. Marketing Campaigns 91 12.References; 98 13.Appendices 108 14.Appendices: References 136 CRM Field Lab | Sport Lisboa e Benfica | 6 1 | Table of Contents LIST OF TABLES TABLE 1 Big Five European league clubs’ revenues – 2015/16 13 TABLE 2 Evolution of the number of viewers in games 14 TABLE 3 Members Distribution per type of membership 64 TABLE 4 Members with RedPass and Type of RedPass 64 TABLE 5 Type of Charges (RedPass) 64 TABLE 6 Type of RedPass 64 TABLE 7 Tickets per game location 65 TABLE 8 Tickets purchased per league 65 TABLE 9 Purchase Channel 65 TABLE 10 Purchase Channel for Correspondente Members 65 TABLE 11 Number of tickets bought 66 TABLE 12 The power of members 67 TABLE 13 Sales by Age 67 TABLE 14 Top City breakdown 67 TABLE 15 Number of Members and Ticket Expenditure per age group 68 CRM Field Lab | Sport Lisboa e Benfica | 7 1 | Table of Contents LIST OF TABLES TABLE 16 Number of Members and Ticket Expenditure considering only Sócios Correspondentes 68 TABLE 17 Expenditure per Type of Membership 69 TABLE 18 Relationship between Expenditure in Tickets and Expenditure in Merchandising 69 TABLE 19 Category 71 TABLE 20 Top City break down 71 TABLE 21 Members with fees due vs total members 73 TABLE 22 Number of members with fees due over X months ago 73 TABLE 23 Membership payment per frequency of payment 74 TABLE 24 Members with fees due vs total members 75 TABLE 25 Number of members with fees due over X months ago 75 TABLE 26 Number of members with fees due over 3 months ago 75 TABLE 27 Overdue members per type of charge 76 TABLE 28 Cobrança Postal – age Distribution 76 TABLE 29 Membership payment per frequency of payment 77 TABLE 30 Value per member Type 79 CRM Field Lab | Sport Lisboa e Benfica | 8 1 | Table of Contents LIST OF TABLES TABLE 31 Value per City (Top 12) 79 TABLE 32 Value per Member Marital Status 79 TABLE 33 Value per Age Group 79 TABLE 34 Top-12 Members with highest value 80 TABLE 35 Characterization of Top-5 Members 80 TABLE 36 Value per Member Type 81 TABLE 37 Top Cities in Value 81 TABLE 38 Value per Member Marital Status 81 TABLE 39 Value per Age Group 81 CRM Field Lab | Sport Lisboa e Benfica | 9 1 | Table of Contents LIST OF GRAPHS GRAPH 1 Long-term European club revenue growth (€ Billion) 13 GRAPH 2 Big Five European league clubs’ revenues – 2015/16 13 GRAPH 3 How are the Portuguese League Revenues divided? 14 GRAPH 4 How are SL Benfica’s Revenues divided? 15 GRAPH 5 2015/16 European Soccer Leagues broadcasting Time on Chinese TV Channels (hours) 18 GRAPH 6 2015/16 European Football Leagues broadcasting results (thousands of viewers) 33 GRAPH 7 Membership fee value Distribution 64 GRAPH 8 Members distribution per frequency of payment 64 GRAPH 9 Tickets per Month (value) 66 GRAPH 10 Merchandising Sales per Channel (from July 2016 to November 2017) 70 GRAPH 11 Merchandising Sales per Month (from July 2016 to November 2017) 70 GRAPH 12 Sales by Channel (326) 71 GRAPH 13 Number of members with fees due over 3 months ago 73 GRAPH 14 Evolution of New members and dropouts 74 GRAPH 15 Evolution of New members and dropouts 77 CRM Field Lab | Sport Lisboa e Benfica | 10 2 | Executive Summary This CRM Field Lab was developed during the Fall semester of 2017 under the guidance of Professor Elizabete Cardoso. The project’s objective was to solve some key aspects and challenges raised by the client: SL Benfica’s management team. The first challenge was to propose a strategy to tackle the club’s internationalisation goals. This challenge was addressed by performing a study on the three countries suggested by SL Benfica - China, USA, and India - and by proposing tailored internationalisation strategies for each country with a business development timeline and communication strategies. SL Benfica’s internationalisation will follow a joint venture entry mode and include a bundle of products and services that range from their core business to digital. Those products include football schools, academies, merchandising and other relevant ones according on the market, as well as the establishment of business offices in the different countries. To introduce these products and SL Benfica’s brand in the markets the club will go through some steps that include creation of awareness, business development, expansion and broadcasting rights. These products’ implementation and strategies’ development shall be measured and tracked to understand the effects and results that may change the course of implementation of the next stages of the internationalization process. The team also highlighted the need to perform a comprehensive study on membership churn which was addressed by performing three churn analyses that considered different ranges of members: all the members in the database and members who joined the membership between august 2016 and the present. These analyses helped understand which “segments” have a lower retention rate and therefore shall be the basis of targeted initiatives and campaigns. Therefore, campaigns were created to target members in the categories with a higher churn rate like Juvenil, Correspondente, and Cobrança Postal. Besides the churn directed campaigns, others were developed to nurture a family based culture in the club and thus attract families to matches. Another key aspect of the project was to generate insights from Benfica’s memberbase, its characteristics, the value they bring to the club and how that value is generated. Based on the limited available data a lifetime value analysis was not possible to complete but in turn was performed a Member Value analysis that considered the minimum common denominator in terms of time between all available data sources. From this analysis the most valuable members were identified, alongside the most valuable cities, marital status and type of members. From these analyses campaigns were developed to provide members with the biggest value for their membership focusing on a point system, a lifelong member kit, showcasing the advantages of the membership and showing members how their membership fees contribute to SL Benfica’s success. Lastly there was also a need to understand what members and non-members think about the club, the channels and gather insights from real people. This qualitative research was performed by the Research Methods for Business class through semi-structured interviews with team supporters, members and ex-members. These interviews were used in the field lab as a source of information regarding members’ and non-members’ opinions and served to confirm previously taken conclusions. It served as well as a source for the main reasons that trigger supporters to become members, ex- members and move through the lifecycle and relationship with the club which led to the development of a framework for the segmentation of Benfica’s customers. With these results, recommendations were developed to improve Benfica’s website and app and suggestions on how to use machine learning applications to improve the database and data usage. CRM Field Lab | Sport Lisboa e Benfica | 11 3 | The Challenge and Methodology Challenges How to Internationalise to these markets? How to increase the current and potential value of SL How to optimize SL Benfica’s digital channels Benfica’s members? in order to increase engagement? Considering the global phenomenon and the fact that the Portuguese League is stagnant and doesn’t SL Benfica’s revenues are highly dependent on sportive success.