Not too long ago we blogged about the Tampa Bay Lightning embedding RFID tags in the jerseys worn by season ticket holders. The strategy was to encourage repeat customers and increase sales and revenue. Could the Sports & Entertainment market be the next major adopter of RFID? It seems as though the idea of using technology to build brand loyalty in this segment is catching on.
The Washington Nationals have also embarked on an RFID-fueled rewards program that links ticketing, concessions, merchandise and parking to keep their fans coming back and spending money.
At Nationals Park RFID readers have been installed at the front gate, as well as at refreshment stands and merchandise shops. With RFID-enabled turnstiles, fans required an average of less than three seconds to enter the park as opposed to almost 10 seconds when tickets were manually scanned. And, if a fan has earned enough points to merit a freebee such as a hot dog, t-shirt, or even a game ticket, he will receive a text message or an e-mail indicating as such, if he has opted into the program.
However, brand loyalty isn’t the only business benefit that will drive RFID adoption in the sports and entertainment market. Anyone who has ever tried to buy tickets to a Red Sox vs. Yankees game knows that those tickets are in such high demand, they usually sell out as soon as they go on sale. If you were at Ray Bourque’s last game in Boston in a Bruins uniform, you’d recall there was not an empty seat in the house, or in the aisle for that matter. It makes sense that franchises would want to capitalize on those peak demand situations.
Enter dynamic pricing. The concept has been around for a while, but it has only just recently taken off in sports. With dynamic pricing, not only can the franchise profit more from the games everyone wants to attend, they can appropriately value tickets for the games that aren’t as popular. For example if the weather is bad or if there is another major event happening at the same time, the tickets can be priced accordingly and both the fans and the franchise are happy.
According to a Forbes story, “Ticket pricing technologies have advanced to the point where it has become logistically more efficient to implement dynamic pricing in sports.” The article doesn’t specifically mention RFID, but based on what we’ve seen with the Tampa Bay Lightning and Washington Nationals, RFID could assist with dynamic pricing adoption because of the customer identification and direct messaging it could help facilitate.
Qcue, the company that develops software for dynamic pricing, has seen clients increase revenue by an average of about 30% in high demand situations and approximately 5-10% in low demand situations. It would be interesting to see how much the profit margins could increase by integrating with an RFID solution.