If you’re not measuring what you’re selling, you don’t know Jack

Jack Birch solves problems. As sponsorship sales consultant to the pros, Jack coaches salespeople to keep the compass in mind. True north is to help brands  “teach your difference.”  You tell their story. What’s different. What’s better. Central to telling a brand story is sharing the “big idea” behind the brand with fans.

A brand is an idea. It’s not a product. It’s not a thing. Or a service. It’s a concept. It’s what the brand wants to represent in the minds of its customers. A brand is a premise with a promise. Brand partners want you to share this big idea so your fans become their fans. They want you to share brand meaning.

Shared meaning is the first M to measure, followed by Money, Medium and Momentum.

Meaning

Properties sell the means to bring meaning to life.The big idea gets bigger when you share it with your fans.

Take a law firm. Please.

No one takes time to learn about lawyers until they need one. That changes when a law firm partners with a pro team. Passionate fans of the San Antonio Spurs know the Davis Law Firm “fights for your future” and overwhelmingly know their phone number is (210) 444-4444. New Orleans Saints fans know Dudley DeBosier is the official team partner that provides free Uber rides after the game, illustrating the personal attention fans get with the firm. And, yes, fans know their number is (504) 4Tres Amigos44-4444. Just goes to show when people need an injury lawyer, best not have them recall too many numbers.

Do you know the meanings of the brands you manage? The ones you’re pitching? If you don’t, you don’t know Jack. But, if you do know Jack (that’s him, far right), then you know the meaning of life. Well, at least you know to find the one or two words the brand wants to own in the minds of fans. The next question is: Are you measuring it?

Money

Stay with us here. The two things all brands want to do are:

  1. Sell stuff.
  2. Grow profits.

Properties pitch and promise ways to help brands sell more stuff and grow profits. Properties promise to add more bank accounts, airline app users, weekly grocery shoppers, or daily coffee drinkers. We are in the business of helping properties include valid measures to prove they deliver on such promises.

Medium

Teams offer the medium of communication to reach fans. Teams don’t sell the rights to marks/logo, LED, scoreboard signage, naming rights, broadcast ads, website banners, social media, game promotions, and jersey patches. It’s not a media buy. Brands can get lower CPM elsewhere. Brands partner with the property to get access to effective media. Brands want to improve communications and inspire the community. Brands want to know if fan passion transfers to the brand.

Selling snake oilIf properties sell sponsorships because it works better than traditional media, it would be a good idea (it’s really our big idea) to measure just how effective the sponsorship medium is. In fact, it’s our moral obligation to measure what we sell. Otherwise, what are we doing? (→)

We help properties measure the effectiveness of each medium used by the sponsor to share meaning and make money. The sponsor sees the relationship between the price they paid and what they get. That’s the definition of value.1

Momentum

The brand’s meaning differentiates it from competitors. The lift in brand equity from sponsorships assures the brand’s future. Our measures of differentiation and brand strength are shown to drive stock market price and allows the brand to charge more.2

Each brand then, one hopes, is different. Each has specific goals to benchmark and measure over the course of the contract and year-over-year. Toyota is the official partner of the Vegas Golden Knights. Partnership recall is great (51%) compared to average (~40%) and for the auto category (42%). Even better is knowing these fans are more than twice as likely to have test driven a Toyota in the past 12 months3 and twice as likely to have test driven a Toyota over a Honda. Better still, the number of fans who own a Toyota is up 78% among those who recall Toyota as the team partner.

When we measure results over the course of the contract we demonstrate the momentum will continue when the brand renews the partnership.

Membership

Membership has its privileges. Maybe it’s the fifth M. Join the 20 other pro teams that measure what they sell.

 

 

Does sponsorship work?

Sponsorship spending increased 70% from over the past dozen years (2006-2018) and people still ask, “Does sponsorship work?”

  • Yes, sponsorship works. Sponsorship works when fans make the connection between the brand and the team. We call that sponsorship recall.
  • Why does sponsorship work? Sponsorship works because passion transfers from the team to the brand. The stronger the ties that bind the brand with the team, the greater the passion transfer.
  • What builds strong ties? Brands build strong ties when they share brand meaning through the team via multiple channels of communication.

Average Sponsorship Recall & Brand Lift

Average NFL sponsor recall1 was 38-39% across eight teams over the past two years (2017-2018). Among 11 teams this year the average recall from preseason is up to 43% in the NFL. Adding eight more teams from the NBA and NHL, average recall remains about the same (44%). The increase is due to (a) adding teams measuring strong partnerships, (b) teams selecting more partners above a given spending threshold, and (c) our partners getting smarter in sharing brand meaning with fans. However, with 165 brands represented, it’s safe to say average recall across the leagues hovers near 40% (+/- a few points) over the past three years.

The data visualization demonstrates the biggest differences are across categories. Hover over each category to see the distribution within that group of sponsors. Above average recall comes from the brand’s active use of the team’s marks and often some kind of entitlement or dedicated branded space (gates, training facilities, etc.). Below average recall often occurs in the first years of a contract in non-exclusive categories. Nonetheless, 25% recall among an NFL team’s fan base of four million is still one million passionate fans.

Below the recall comparisons by category we can see the effects on the key brand metrics of differentiation2 and preference3 On average for the NFL, when fans recall brands as the partner of the team, they improve brand relevance, differentiation and preference by over 60%.

Note: All results are based on a scientifically designed sample of the team’s database accurately reflecting season ticket holders, single game buyers and all other registered users. These results statistically infer brand lift without directly asking fans about the relationship between recall and effects (e.g., “If brand X is a sponsor of the team….”).

Thanks to Ian Young for the cool data viz.

Brand preference: Why regard, relevance, differentiation and trust matter

The overarching goal of partnerships is to use the assets of the property to increase brand preference and use among fans of the team.

The route to brand preference and purchase is well-established in theory and practice. It’s all about relationships. Brands are like people. And, people are brands, for that matter.

Who do you prefer?

The steps to who–people and brands–you prefer to spend time, money and effort with are the same:

  1. I know who you are.
  2. Based on your behavior & associations, I hold you in relatively low or high regard.
  3. Because of shared relationships, you become more or less relevant.
  4. If you clearly align with my deepest passions, I see you as differentiated from others. You stand out.
  5. Now I can trust you.
  6. I prefer the brand with the highest regard, relevance, differentiation and trust.
  7. I buy the brand I prefer.

And Survey Says….

We can reliably predict brand preference for NFL partners if we know how fans feel about the brand’s regard, relevance, differentiation and trust. Our data from over 100,000 consumer opinions of over 120 brand partners among seven NFL teams (charts below) verify the importance of taking each step to build fan-brand relationships.

Why brand equity–regard, relevance, differentiation and trust–matters

For a brand that fans say is “the one I would prefer,” consider these indexed scores compared to brands they “would never use.”

Brand Equity Index Prefer/Never
Regard  +118% 5.83/2.66
Relevance +242% 5.01/1.47
Differentiation  +376% 80.34/16.87
Trust  +323% 81.96/19.37

Brand Preference = Brand Usage

Across all 120+ brand partners, if fans say the brand is “the one I prefer,” then 78.8% use that brand.

Preference Leads to Use

Why isn’t it 100%? Some categories are slow burns, like insurance, telecom, and banking. Fans of the Chicago Bears have high regard, relevance, differentiation and trust for PNC Bank–and the next time they have a banking decision–they will consider or use PNC Bank services. Fans of the Houston Texans have the same positive feelings about Verizon and the next time they have to decide which service to use, Verizon is in prime position. In any case, the property has done its job of building brand preference.

The brand partner brings it home when it makes unmistakable connections with fans and offers clear opportunities to do business with the brand in conjunction with the partnership.

HEB Brings It Home