The essence of any business operation is to ensure that profit is maximized as much as possible. As such, every business organization, regardless of the industry in which it operates, tries as much as possible to ensure that it is able to remain competitive and so profitable. Making a profit is in itself dependent on the ability of the organization under consideration to make sales of its goods andor services. In turn, sales are dependent on how good marketing campaigns are undertaken. The better the marketing, the higher the chances that customer will be convinced and turn up to obtain the goodsservices on offer (Bluestein et al. 2003). In essence, customer satisfaction is paramount in the process of marketing. In the area of sports, the issue is no different, with clubs using different methods to make sure as many fans as possible are attracted to stadia to watch matches. Customer satisfaction has many facets to it, and this chapter explores them in detail as they apply to the area of sports.
The Need for Customer Satisfaction
Every organization will readily admit that the satisfaction of the customer is paramount, and that as much as many other aspects of organizational strategy can and actually go a long way in contributing tom success of the organization, few can be as important as the need to satisfy the customer and in fact most of these other strategies work toward ensuring the organization is competitive enough be able to either retain its existing customers or to win new ones (John 2003). Customer satisfaction is very critical in that - as has been established over time and through repeated use of different customer satisfaction approaches - it is far much easier for an organization to retain its current pool of customers than to seek for others. In fact, past research also has indicated that not only is it very costly to seek new markets (in the form of new customers) but it is also very labor-intensive and time consuming (John 2003).
As John Joby (2003) notes in Fundamentals of Customer-Focused Management Competing through Service, getting the existing customers satisfied will go a long way in enhancing the performance of any organization, as long as there is no neglecting of other marketing strategies. He adds that the present business community has failed to embrace this time-tested truth and have instead concentrated so much on seeking expansion of their market base (John 2003). The result, he notes, has been the loss of a great lot of the customers already held, and even though the organizations are engaged in a lot of investing in market expansion, they always end up with negative financial statements because while focusing too much on seeking what they do not have, they have lost what was in their hand. He reiterates that although it is not always true that by trying to seek new clients the existing ones will be lost, it is paramount, wise, and even strategic to seek to retain the existing customers than to go for new ones (John 2003).
The value of customer satisfaction is emphasized by Gitman McDaniel (2005) in The Future of Business The Essentials where they affirm it as a tool for survival for the organization that is in a very competitive industry. They cite customer satisfaction as among the key determinants of the continued successful operation of any organization, especially those that are operating in industries that are in a perfect competition type of market system such as in sports. According to them, it is only how well a club, a society, a union, or any other organization is able to keep customers satisfied that will determine whether or not they will be willing to remain or not (Gitman McDaniel 2005). They are of the view that since markets are always full of competing firms, there being very few real monopolies, keeping the already acquired customers will go along way in enhancing the competitive edge of the organizations in question. Accordingly, in order to underscore the great value inherent in customer satisfaction, they point to its being one of the four main perspectives that constitute Balanced Scorecards (Gitman McDaniel 2005).
The Sporting Arena
The field of sports has in the recent past become one of the most profitable ventures where even the most nave investors are now considering venturing after proving they are able to bring about great returns on investments (Beech Chardwick 2007). The investment is sports in no less different from many other investments in other areas. There is much need to keep customers satisfied and yearning for more in order for them to be in a position to keep coming to watch other matches and sporting events. In sports, though, the main factor that will get people flocking to the stadium to watch matches is the nature of the sport as far as its popularity is concerned and, therefore, how the sport is able to bring good returns from the sale of tickets and from the sale of the rights to televise the matches. Football (soccer) is one of the most popular sports in the world, capable of drawing more than enough fans to a stadium at a given time (Beech Chardwick 2007). As such, any football club might not need to really do so much in order to get its customers. This is especially so if the club in question is popular and has in its team players who have a big fan base (Kessler 2003).
Although in the recent past the popularity of players has depended to a large extent on the popularity of their local leagues and the way the international media covers the leagues, there has still been a tendency for football clubs to attract fans fairly well (Beech Chardwick 2007). In seeking to satisfy customers and to make them remain glued to their seats in stadia, therefore, it is very important that these and other factors are considered and given priority. Unlike customers in other fields, sports fans in general and soccer fans in particular tend to flock to stadia which have their favorite teams or clubs playing and the level of support for a club depends on its competitiveness in the local as well international sporting arena. If a club is competitive enough both locally and internally, then the chances are that it will be in a better position to have a bigger fan base and the fans will tend to remain longer with the club. Although it has been noted in sporting events that some clubs have life members, this trend is fast changing, with allegiance to any given club by fans becoming purely dependent on the ability of the club to perform (Beech Chardwick 2007).
In Europe, for instance, there are a number of clubs that have dominated the continents most competitive club football tournament, the UEFA Champions League, for a long time (Beech Chardwick 2007). It might appear a little weird but the fact is that clubs from only five nations have had a historic appearance every year, and the winners have most of the time been from one of these five. These nations are England, Spain, Italy, Portugal, and Germany. Although others like Holland, Greece, and Turkey have been more or less regular, the five are rarely without a representative. Of the five, England, Germany, Italy, and Spain have some of the most competitive soccer leagues in the world (Beech Chardwick 2007). As such, they have a lot of following throughout the world. This popularity has enabled the Clubs from these countries to perform extremely well as far as retaining fans is concerned and they are among the richest clubs in the world. In England, clubs like Manchester United, Arsenal, Chelsea, and Liverpool have been able to retain fans for a long time, and each year more fans get added to them depending on their competitiveness. In Spain, Real Madrid and Barcelona are very competitive, and their customer retention ability has surpassed most other clubs in the world. Bayern Munich, Werder Bremen, and Bayer Leverkusen in Germany, and AC Milan and Inter Milan in Italy, are also clubs with a huge and strong fan base (Beech Chardwick 2007).
In order to understand how they manage to have such a huge success and so have an in-depth knowledge of the way to go to satisfy customers in the sporting arena (football in particular), an analysis of one of the clubs is important. Manchester United is a club which has a history of good performance, and it is known that it has very many faithful fans all around the world (Manchester United FC 2004). Its season tickets are usually sold out totally so that the club has no need of extensive marketing of itself to attract fans to its matches. The only marketing done by the club is in seeking to attract new talents, or to ensure there are more revenues from Television rights (Manchester United FC 2004). The club is therefore better positioned to offer the required insights into the art of customer satisfaction because for it to be among the oldest clubs in English football history and yet one with among the highest rate of following, it must have learnt to satisfy customers.
Manchester United FC Survey
A survey done by the club in 2004 to ascertain the level of customer satisfaction showed that a number of issues were key in determining customer satisfaction. Among them was the issue of player transfers both at the end of the season and during the mid-season transfer window (Manchester United FC 2004). Most fans were not happy with transfers of the clubs most adored players. Although such transfers were aimed at improving the clubs financial ability, it was cited as causing a slight dissatisfaction level in fans. The respondents in the questionnaire-based survey also cited the commitment of the administration of the club, including the manager Sir Alex Fergusson, and the other administrators, to the club and to the fans. The team has people who care about the welfare of the club more than even their own. And because the desire of any soccer fan is to see hisher team winning matches - it really does not matter how this is done the fans have been moved by this attitude in the clubs management (Manchester United FC 2004).
The ability of the club to remain competitive and afford to win trophies has also played a great part in achieving high levels of customer satisfaction (Beech Chardwick 2007). Every fan desires to be proud of the club one supports, and there is no greater pride in a club than that brought about by feelings of victory and triumph. Listening to fans was also a recurrent response in the questionnaires. Fans felt that at Manchester they have been given the chance to take part in making decisions affecting the club (Manchester United FC 2004). They have an understanding that before even a player is bought or allowed to terminate his contract at the club, they will have known of it and given their views. Therefore, in the light of this particular response, the ability to satisfy customers is so much a matter of involving them in affairs of the club (Manchester United FC 2004). Regardless of the performance of the club, it will be ideal for a club to care enough to keep its fans posted on the developments in the club. Just like in any other marketing endeavor or customer retention strategy in any other field, sports fans satisfaction has to be given priority and treated with importance. Customers are usually in need of being given a sense of belonging to a place that is a certain marketer in order for them to remain loyal (Manchester United FC 2004). This brings into play the issue of market segmentation.
Market Segmentation
The ability for a marketer to create segments within the general market is critical to retention of customers (Steenkamp Ter Hofstede 2002). Every customer is able to be served uniquely when in a given segment of the wider market, and this contributes to hisher developing loyalty to the marketer. This is because the customer gets to be served in the way heshe requires and expects. It therefore keeps one from seeking similar services or goods elsewhere even if they are cheaper or better (Steenkamp Ter Hofstede 2002). The driving factor here is the trust that the customer has in the marketer. This similar concept can be successfully applied to the sporting arena. In this case, every soccer fan will require to be assured that at the club heshe supports, heshe will be able to not only get entertained but also get the sense of having been taken good care of in order to have a level of satisfaction that one expected. Market segments also assist the marketer to be in a better position to know who among the customer are likely to stop using the services of an organization (or are high-risk), who are likely to remain for longer in spite of the possibility of other forces in the market, and who among the customers are worthy seeking to retain (Steenkamp Ter Hofstede 2002).
In sports and soccer in particular, clubs ought to be wary of seasonal fans who keep moving from club to club based on factors that can be considered as trivial. As such, the clubs ought not to seek to retain such. Instead, a focus ought to be placed on those fans who have been consistent in using the services of the club over a long period of time. Steenkamp Ter Hofstede (2002), writing in the International Journal of Market Research are full of support for segmentation of markets. In the article International market segmentation issues and perspectives,they advocate for the creation of market segments which will treat customers differently as society is naturally composed of people with differences and variety some might love noisy stadia while others do not. Others are very enthusiastic with football while others are ardent fans of the NBA League Steenkamp Ter Hofstede 2002. As such, it is extremely important that football clubs are able to understand this key customer retention principle, because unless a customer is served in accordance with hisher requirements, then it is very difficult to retain such. APOEL FC has so well managed to use this strategy of segmentation, and as such - at least as far as this particular area is concerned - it ought to only improve it a bit and manage it well to be able to retain fans (Steenkamp Ter Hofstede 2002).
The segments in this case are in the form of different seating areas in the stadium, including the area for the disabled, the VIP section, among others Steenkamp Ter Hofstede 2002. The manner in which season tickets are priced also goes a long way in determining the way a club is able to retain customers. APOEL FC ought to use this strategy to its advantage, by ensuring that pricing is based on the specific needs of the different segments in the market pool Steenkamp Ter Hofstede 2002. There are usually soccer fans who have no problem spending money on a game as long as the game is entertaining enough. Such ones can be sold higher-value tickets especially during very competitive matches like the UEFA Champions League without having to worry that they will feel overcharged. Other fans in the same market segment will tend to watch all matches only if the tickets are affordably priced. In essence, as Johnson Michael et al. (2001) note in the article the evolution and future of national customer satisfaction index models carried in the Journal of Economic Psychology, such will still give a positive customer satisfaction report because at the end of it all they will really be satisfied (Johnson et al. 2001).
Satisfaction, notes the author, is the key to retention, but is far cheaper than seeking to bring on board new fans (Johnson et al. 2001). It is imperative to ensure the fans are part of the club as much as possible, whether it is during the main season of the league or not. Unlike other customers, soccer fans are never in need of so much searching for them to be found. Instead, they will come more as a result of what the club has become reputed for, and partly because they just want to have fun (Johnson et al. 2001). In soccer, therefore, the club must always be ready to ensure it does what is able to earn it a good reputation as in so doing the huge number of fans who are never attached to a specific club can just as well sign up as fans of
the club (Johnson et al. 2001).
Gupta Sunil (2005), writing in Managing Customers as Investments, outlines some of the approaches that can be taken to ensure that customers are retained. This is only after the customers have been proved to be worthy retaining as indicated buy their consistency in using the services or goods of the organization (Gupta 2005). One of the approaches is to ensure the customer gets constant feedback in the form of appreciation for hisher continued support of the organization through constant use of its products. In addition, the organization ought to deliberately put in place programs that will allow the loyal customers to be rewarded through such means as commissions andor discounts on their purchases, after-sale services, and gifts. This will go a long way in encouraging the customer to remain (Gupta 2005).
As pointed out earlier in the survey done at Manchester United FC, having a sense of belonging to an organization or club goes a long way in making a customer or fan a faithful and loyal member. In soccer, the ability to have customers satisfied and therefore to retain them is much a factor of understanding their consumption behavior as it is that of being nice to them. Leaving out the seasonal, migratory ones who will move on regardless of the extent to which a club goes to retain them, fans will tend to be so much involved with the clubs they support that some end up acquiring stakes in the club. This brings in another strategy that can be used to retain customer making sure they have a share in the club (Gupta 2005). Although it is not possible to have all fans being allocated shares, there have been instances where clubs have given priority to its fans in the issuance of shares (Gupta 2005).
Club Indebtedness
In the past, it has been noted that it is very hard to satisfy fans if the club in question is not able to stay free from debts. Although this varies from place to place and from club to club, this consideration is worthy noting as it is critical. Just like in other marketing fields, every soccer fan desires to do business with a club which one knows is headed for a better future. Every ticket bought by a fan is an investment in the club which, although the fan might not get any direct financial returns from, heshe will be able to watch the club improve through purchasing of new players who can in turn enhance the clubs competiveness. It is worth noting here that some of the most successful clubs are also heavily indebted, with their continued good performance being the only way they can hope to get out of debt. This has explained why there have been witnessed instances of clubs changing owners many times over in an attempt to free them from debt.
In essence, clubs with debts will always struggle to some extent to get support except if they are capable of remaining competitive to a level their financial misfortunes do not play into their performance. In England, Manchester United FC and Liverpool FC are among the most indebted clubs. Although they both have had a good support from fans until lately when Liverpool has lost a considerable lot of them due to poor results, their continued good performance is the only major aspect that has kept them going (Griffin 2007). On this basis, therefore, it is critical that soccer clubs ensure they are free from debts because fans do not want to feel that they are paying the money to help bail out poor clubs, or to get no return out of it. This is based on the truth that a club that is struggling under the burden of debts will most likely fail to get the kind of talent it desires, and even maintaining the current players will be more of a hurdle.
