Chelsea FC Membership

Introduction

•Our relationship with our customers are a team effort – membership is about the fans, it’s about ticketing, it’s about CRM and it’s about the future prosperity of Chelsea FC.

•A scheme that ticks all the boxes - membership should make (more) money but also serve as a tool to grow the fan base

•Give the fans a choice. Offering something for everyone.

•A membership scheme and a communications plan developed using market & fan research as well as analysis

Objectives

1. Build better relationship with our fans

2. Listen to what fans want

3. Grow paid for membership from 60,000 to 97,000

4. 125,000 e-members (both adults and Juniors)

5. Reduce costs & maximise revenue opportunity

6. Create a membership scheme that will be compatible with a future loyalty programme

*Based on figures supplied by CDM

UK Membership Comparison Year on Year

Research Says…

2003/2004 - 27,000

2004/2005 - 45,000

2005/2006 – 62,939

2007/2008 – 56,821

2006/2007 – 65,621

Month

Membership Satisfaction

Member Research

18% 38% 45%2005/2006

Member Research

• 78% members would recommend friends/family with right incentive

• 97% members happy to renew if offering remains consistently high

• 69% Ticket access is still the key motivator (25% quoted loyalty to the club)

• 17% of lapsed members forgot to renew

Last Season Customer Hierarchy

Season Tickets (25,000)

Members(56,821)

Database(200,000 marketable of

a total of 670,000)

Monthly unique visitors to chelseafc.com

(1.4million global)(659,400 UK users)

Customer Segmentation

• Customer profiling has established unique customer segments or ‘clusters’ of very different groups of people who interact with CFC in different ways and have varying needs and motivations

• These segments have helped shape our membership proposition

Segmentation

Date of last interaction

2006/2007 Season 2007/2008 Season

Cu

sto

mer

Sp

end

£0

£250

£1,000

1

2 3

5

4

76

89

Communication strategy

Segment Characteristics

1. Man of the Match Highest consumer spend and match attendance

2. Vice Captains High consumer spend, high match attendance

3. Out with Injury High consumer spend and match attendance – last season only

4. Flag Flyers Medium spend, high match attendance, heavy brand engagement

5. Gentleman Fan Medium spend, high match attendance, low brand engagement

6. Out of Favour Medium consumer spend and match attendance – last season only

Communication strategy

Segment Characteristics

7. New Signings Low consumer spend and match attendance

8. Fan Family Non match attendance but engage with the brand

9. Gifters Merchandise purchasers

10. Fans for Life Children

11. Members with Children Non member children

12. International Match Players

International consumers that attend matches

13. International Brand Players

International consumers that don’t attend matches

Customer Insight Driven Product Development

Free e-membership – Why?

• We have 261,000 International Brand Interactors (don’t buy tickets but do engage in another way e.g website, kitbag)

•Being ‘part’ of something second most sited reason for being a member

•We have 113,000 UK Brand Interactors

•Most of the competition currently have free online offering (with registration)

• Challenging data targets

• 53% members & 84% supporters would like free online membership*

• 63.8% population has internet access**

• From 2003 43% increase in broadband (UK population)***

•We have 1.4 unique visitors to the web-site a month and we don’t know who they are.

Source: *Chelsea Research Conducted **Neilsen/NR ***National Statistics

Free e-membership

• Objectives:

- Data Generation (with future revenue generation)• More contactable info

- Build the foundation for future loyalty scheme

- Upsell paid for membership and cross-sell other CFC products

Target 100k new/additional contacts

Free e-membership

• Promotion– Consistently promoted throughout season. – Across CFC media & ChelseaFC.com homepage

• Registration– Give people reason to register by clearly explain benefits of joining – Easy to join & simple data capture– Further data capture opportunities

• Website sticky content– Quality e-offering– Relevant (updated) content = customers returning

• E-comms– Communicate relevant & timely communications– Cross sell & up sell paid for membership

(This activity will commence 1 month from the new website launch)

Free Junior e- membership - why?

• 18,000 5 to 15 year old brand interactors

• 62% of our under-18 members would consider an e-members scheme

• 63% of Children have access to the internet*

• Boys (U16) spend 1.9 hours a day on the internet, girls 2.1 hours a day

• 72% of all children U16 have visited a social networking site, and over half of them have set up their own profile. Children as young as eight are now signing up.

*Ofcom research

Free Junior e-membership – ‘Building fans for the future’

• Objectives:

– To grow the number of Chelsea junior supporters on the database

– To upsell Chelsea junior ‘paid for’ membership scheme

– Grow long term support and life time value

– Attract sponsor

– Capture fans at a critical age

Target 25,000

£10 Junior Membership – Why

• Supports the CFC Junior strategy – maintain and obtain

• Obtains good PR for the club

• An increase in price for 07/08 has seen a drop off in membership

• Competition – some clubs attract Juniors by either having a free scheme (Man City) or a low-cost Junior option (Newcastle)

£10 True Blue Junior membership

• Objectives – Grow long term support and life time value

– Capture fans at a critical age

– Grow Database

Target 25,000

£10 Junior True Blue Membership

Pack• Welcome booklet• Wall chart• Certificate• DVD• Poster• Voucher booklet – kids offersAbove collated in a container & mailed in box (October) TBA

Plus• TeamCard• Birthday and Christmas cards• ‘Bridge Kids’ bi-annual magazine• ‘Bridge Kids’ weekly email• Free kids membership online access

Adult True Blue – more flexibility

Type Cost Rational

Ticket Only (50k) £25 In a recent survey 69% of members said tickets were key motivator for joining membership

6655 ‘gentleman’ fans – buy tickets but never buy product

Ticket & magazine (10k) £32 86% of members prefer the hardcopy of the Chelsea magazine

Ticket & pack & magazine (5k)

£42 93% are satisfied with the current membership

108,000 ‘gifters’ Flag Flyers

Ticket & pack & online magazine (overseas only) (5k)

£42 Our overseas members complained about the current price of True Blue membership (£90)

261,000 International fans engaging but priced out

New Season Customer Hieracrchy

Season Tickets

Up

sell

FREE

Premium

True Blue(Tiered)

70k Adults (TBC)

E-Membership100k (TBC)

Database200k Marketable of total of 670,000

1.4 million unique visits to website(659,400 UK users)

Targeted Marketing and Communications

Targeting

• Our customer segments have helped shape our retention, acquisition and member communications.

• Communications strategy has been developed to ensure content of message, tone of voice, time a frequency of communication will be tailored to each segment.

• Ongoing analysis & evaluation will continue to feedback into the planning process and revise the contact strategy.

Communication strategy

Segment Characteristics Communication Product

1. Man of the Match

Highest consumer spend and match attendance

Retention - personalised invitation letter

Premium

2. Vice Captains

High consumer spend, high match attendance

Retention – second target for Xtra

Premium

3. Out with Injury

High consumer spend and match attendance – last season only

Telemarketing True Blue - choice

4. Flag Flyers Medium spend, high match attendance, heavy brand engagement

Retention - high value DM

True Blue – ticket, pack and magazine

5. Gentleman Fan

Medium spend, high match attendance, low brand engagement

Retention - high value DM

True Blue - ticket only

6. Out of Favour

Medium consumer spend and match attendance – last season only

Research and retain - ‘reason to believe’ email

True Blue - choice

Communication strategy

Segment Characteristics Type of campaign

Product

7. New Signings

Low consumer spend and match attendance

Acquisition and retention – email

Staged - True Blue and eMemership

8. Fan Family Non match attendance but engage with the brand

Acquisition – email True Blue

9. Gifters Merchandise purchasers Acquisition of friend or family – email to gifter

True Blue – ticket, pack and magazine

10. Fans for Life

Children Acquisition and retention – email

£10 Childrens

11. Members with Children

Non member children Acquisition of child – email to parents

£10 Childrens

12. International Match Players

International consumers that attend matches

Acquisition and retention – email

True Blue – ticket, pack and online magazine

13. International Brand Players

International consumers that don’t attend matches

Acquisition and retention – email

eMembership

Results So Far

Results

monthly membership stats

05000

1000015000200002500030000350004000045000500005500060000650007000075000

may

June

Ju

ly

Augus

t

Sept

Oct Nov

Dec

Ja

n Feb

Mar

ch

2005/6 monthly

2006/7 monthly

2007/8 monthly

2008/9 monthly

Results

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Ticket Only Magazine Full Pack International Junior

Tiers - Actual versus Forecast

Actual

Forecast

Thanks for listening!