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CHAPTER 14: Philadelphia 76ers
SUMMARY
Lara Price, Senior Vice President of Business Operations for the Philadelphia 76ers explains the
need to get information from customers, as marketing has changed from traditional mass
marketing now to one-on-one marketing. The only way you can employ one-on-one marketing is
to know your customer. The sports industry has traditionally lagged behind in trying to get to
know their customers. Customer relationship management (CRM) solutions are necessary for the
76ers organization to reach their customers more effectively and to target different product
offerings to different segmented customer groups by tracking spending and lifestyle habits.
Additionally, CRM analytics are important in the organization’s revenue-driving efforts. For
example, the76ers organization can identify customers who want phone calls vs. emails vs. text
messages.
The sports industry poses the challenge of marketing something that is intangible. Because they
cannot ultimately control the product itself (i.e., the players’ performances on the court), the
organization focuses on marketing the experience around the product (labeled as “the driveway-
to-driveway experience”). Controllable elements such as the traffic patterns leading to the game,
the parking lot, greeting customers as they come into the arena, and the dancers and mascot at
the game are examples that the organization can focus on in their marketing efforts. Traditional
mass media approaches are still relevant to the organization, but the 76ers do adjust their media
approaches as such approaches continue to evolve.
DISCUSSION QUESTIONS:
1. Do you feel that the sports industry can nurture relationship customers as opposed to
transaction buyers?
2. Trace the evolution of profits across the years displayed in Figure 14.3 for a 76ers fan.
3. Describe the CRM solutions described in the video.
1. Create an entirely new loyalty program for the 76ers organization. Present your results to the
class.
2. Use the internet to investigate the existence and disposition of a community of 76ers fans.
Apart from this community’s focus on the players and the team winning and losing, attempt to
uncover community insights and evaluation of the “driveway-to-driveway experience” that was
mentioned in the video.
